CHINA will use timely cuts in banks’ reserve requirement ratios (RRR) and other policy tools to support the economy, the State Council has said.

China will step up financial support for the real economy, especially industries and small firms hit by the pandemic, and will lower financing costs, the State Council said in a statement after the State Council’s Executive Meeting chaired by Premier Li Keqiang on Wednesday.

“In light of changes in the current situation, we will encourage large banks with higher provisions to lower provision ratios in an orderly manner and will use monetary policy tools, including RRR cuts, in a timely way,” it said in the statement.

The central bank last cut the RRR — the amount of cash that banks must hold as reserves — by 50 basis points in December.

Authorities will also take measures to boost consumption, barring localities from imposing new restrictions on vehicle purchases, and will step up export tax rebates to stabilize foreign trade, the State Council said.

More steps will be taken to support purchases of new energy vehicles and consumption in rural areas, and boost consumption in healthcare, elderly care and childcare areas, according to the statement.

Relief policies for hard-hit sectors such as catering, retail, tourism, civil aviation, and road, waterway and railway transportation will be promptly and fully delivered, and local authorities encouraged to intensify support and assistance for these sectors, to stabilize more market entities in consumer services.

The supply and price stability of essential consumer goods will be ensured, and logistics kept smooth.

To help ease the difficulties facing foreign trade firms and promote stable growth of import and export, export rebates will be better utilized as an inclusive and equitable policy tool that is consistent with international rules, and the business environment for foreign trade will be improved on multiple fronts.

The business environment for foreign trade will be improved. Customs clearance for returning export goods will be made more efficient. (SD-Xinhua)