BEIJING (Reuters). – China will cut banks’ reserves requirement ratios (RRR), as well as other tools, to help the economy. The statement was made Wednesday by the Chinese cabinet, according to state media. Headwinds are increasing due COVID-19.

China will increase financial support to the real economy, particularly small businesses, hit by COVID-19, according to state media. They will also lower financing costs.

According to the quote, “In view of recent changes in our current situation, large banks with higher provisions will lower their provision ratios in orderly fashion and we will use monetary policies tools such as RRR cuts in a timely manner.”

Cabinet stated that the authorities would also increase consumer consumption. Localities will be prohibited from placing restrictions on vehicles purchases. In addition, they will intensify export tax rebates to stabilize foreign trade.