EconoChina

A blog on Chinese economy & society

China to dole out subsidies for farm produces

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Despite public denial, China has seen skyrocketing prices in many farm produces. The National Development and Reform Commission, the nations’ powerful planning department, has requested that the various local pricing bureaus to issue temporary produce subsidies to low income populations.

Inflation on the ground is much higher than the CPI, partly driven by excess liquidity in the economy, exacerbating social problems that are already plaguing the nation. The top 10% of Chinese make 23x that of the lowest 10%, compared to just 7x 20 years ago. Despite all the brave talks, the government is actually deeply worried. Hence the new found hope for diluting the tightening measures may end up being just that, hope.

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Written by Cindy Luk

May 24, 2010 at 11:01 pm

Posted in China, Macro

Tagged with , ,

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