China is set to launch a nationwide crackdown later this year on major economic problems such as regional protectionism, industrial monopolies, illegal charges and price fraud. The move is being made to appease grumbling consumers, reassure foreign investors and ensure the country's robust economy is not derailed.
There will also be inspections into the price of medical products and services, and school tuition, two top public concerns in China.
In a notice issued yesterday, the State Development Planning Commission pledged to unearth price malpractice as a deterrent and to support an orderly market.
The crackdown comes on the heels of a regulation issued by the State Council late last April to step up efforts to pull the plug on such things as shoddy and counterfeit products, fraudulent business contracts, tax evasion and smuggling.
Experts have warned inaction may stifle consumer spending as public complaints about fake and shoddy goods increases.
Domestic consumption has long been a major contributor to China's strong economic growth. And it will become particularly important as China confronts a slow-down in the global economy which will limit exports, another key economic player.
Premier Zhu Rongji said earlier this year that clamping down on malpractice which undermined market order should top the economic agenda this year.
China has made consistent efforts to curb such practices over the last few years in its transition from a planned to a market economy. However, fledgling laws, coupled with inadequate implementation of other regulations have allowed malpractice to flourish in some areas.
The move is urgent as China moves closer to joining the World Trade Organization, which sets rules for global trade. The entry will commit China to following global practices by crafting an even playing field for investors from both home and abroad.
(China Daily 05/19/2001)
