China urged regional authorities to stock up on food and basic necessities, as well as stabilize their prices. The recommendation sparked a heated discussion on the Internet: people associate it with new coronavirus restrictions and an impending cold snap.

China's Ministry of Commerce issued a notice urging regional authorities to stabilize food prices, ensure adequate food supplies this winter and next spring, and encourage residents to stock up on emergency supplies.

The ministry's statement caused concern among the population, which linked this call to a new outbreak of coronavirus and possible restrictions, an expected cold snap (the temperature in some regions could drop by 15 degrees) or even an increase in tensions with Taiwan, Bloomberg writes, citing discussions on the Internet.

The new notice was similar to the one the ministry issued in September ahead of the week of the October holidays, the agency said. During this period, local authorities were also advised to ensure food supplies and stable prices.

In response, the Chinese state-run Economic Daily urged not to attach too much importance to the Commerce Department's statement. The publication indicated that the department issued a notice for people to prepare supplies in case of quarantine in the new wave of COVID-19. The Economic Daily noted that many households were left without sufficient supplies of rice and vegetables during the quarantine.

Food prices in China are volatile and traditionally rise as winter approaches, the Financial Times explains. According to the newspaper, in recent weeks, due to torrential rains and floods in the country, prices for vegetables have risen sharply.

On the back of a statement from the Commerce Department, stocks in food manufacturers in mainland China and Hong Kong rose, Bloomberg said. Thus, Fu Jian Anjoy Foods rose in price by 9.2%, shares of noodle maker Chen Ke Ming Food Manufacturing – by almost 10%, and shares of Toly Bread – by almost 6.5%.

UkrAgroConsult