The Chinese government decided on Wednesday to take further
measures to stabilize market prices and increase the severity of
punishments for those guilty of driving up prices through hoarding
or cheating.
During?a State Council executive meeting presided over by
Premier Wen Jiabao?the government urged all local
authorities to strengthen price management and supervision and
to?enact the necessary steps to keep the market prices in
order and safeguard consumers' interests.
"Prices of gasoline, natural gas and electricity shall not be
adjusted in the near future, and charges for gas, water, heating
and public transport in cities shall not be raised," a statement
released from the meeting said.
"Fees for medical treatment shall be stabilized. Prices of major
fertilizers, such as carbamide and phosphate fertilizer, shall also
be kept steady and can only be raised really because of cost
increase and after being approved by the regulator," it said.
The government announced it would temporarily intervene in the
setting of prices of daily necessities in line with the Price
Law.
The State Councilors urged relevant government departments to
tighten supervision over price hikes of major goods and services
and to monitor price-cost relations closely to help enterprises fix
prices more reasonably.
"Companies who collude in jacking up prices, stoke up fears for
price hikes by hoarding or spreading phony information, or raise
prices before they are approved and registered officially will face
stern penalties," the statement said.
They also decided at the meeting to make amendments to the
Regulation on Administrative Punishment for Price Violations to
allow more stringent penalties and define procedures of price
adjustment applications.
"No malpractice that violates the laws and regulations and
disturbs the market order will escape punishment," the release
said.
Local governments are also required to conduct special checks
over the grain, oil, meat and liquefied gas prices before the
Spring Festival, China's traditional lunar New Year which falls on
February 7 this year, in order to stabilize prices and ensure
adequate market supplies.
China's inflation rate hit a new 11-year high of 6.9 percent
last November, prompting the government to enact a series of
measures, including subsidizing pig breeders and oil makers, in
order to fight price hikes.
(Xinhua News Agency January 10, 2008)