China Signals Reserve Ratio Cuts Ahead Amid Virus Outbreak

The State Council meeting, led by Premier Li Keqiang, discussed targeted reserve ratio cuts to aid small companies affected by the virus outbreak. The aim is to lower financing costs and help them resume operations. Expected cuts in the reserve ratio and steps to stabilize trade and investment were highlighted. The government is implementing measures to mitigate the economic impact, including monetary and fiscal policies. China's factories are resuming work but face challenges from global demand reduction and supply chain issues, with increased raw material costs and delivery delays.

What was one of the main goals of the State Council meeting led by Premier Li Keqiang?

• To reduce foreign trade

• To implement large-scale stimulus

• To cut reserve ratios to boost lending

• To increase taxes on small companies

What is one of the expected fiscal measures to support the economy?

• Increasing tax relief

• Raising interest rates

• Reducing government debt

• Decreasing infrastructure spending

How is the global spread of the coronavirus affecting China's manufacturing sector?

• Increasing domestic demand

• Reducing international orders

• Improving supply chain efficiency

• Lowering raw material prices

What challenge are Chinese factories facing despite resuming operations?

• Higher demand from local customers

• Canceled orders from international clients

• Improved supply chain logistics

• Increased domestic competition

What impact has the virus outbreak had on China's supply chains?

• Stable supply chain operations

• Decreased raw material prices

• Shortened delivery times

• Increased raw material prices