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Farmers and cattlemen are being offered special subsidies and favorable treatment by the government so that they can stay in business.

Measures are also being taken to reduce the trade surplus, so inflation does not get worse by the attendant liquidity. Export tax rebate rates have been cut, some are no longer eligible for tax rebates, and import tariffs have been lowered.

Liquidity is being diverted into more financial products and the capital market, so that inflation pressure on the commodity market is eased.

These measures will help achieve the dual target of containing inflation and ensuring reasonable economic growth.

The author is a professor of finance from the Economics School, Fudan University