State Council: Rigid Intervention In Prices Is Not A Return To The Planned Economic System.

Last night, the national development and Reform Commission website published the notice of the State Council on stabilizing the general level of consumer prices to protect the basic livelihood of the masses (hereinafter referred to as the notice), giving special attention to the need to impose temporary price intervention measures on important necessities and production materials when necessary, and the necessary intervention measures are legal basis, which will not change the autonomy of enterprise pricing under the market economy condition, nor return to a highly centralized planned economic system.

Economic means to stabilize the prices of daily necessities

The notice stressed that China will focus on economic and legal means, supplemented by the necessary administrative means to further improve market price regulation and supervision.

On this macroscopic basis, the State Council requires all regions and departments to take active steps to develop production and increase huff and puff.

Legal means cost supervision and examination Ordinance will be promulgated

In terms of the use of legal means, in view of the abnormal fluctuations in prices of small agricultural products such as mung bean and garlic this year, the relevant government departments have carefully investigated and investigated a number of typical cases of malicious hoarding, driving up prices and collating prices, and maintaining market order.

At the same time, the state revised the administrative penalty provisions for price violations, and incorporated the behavior of fabricating and distributing price information into the scope of price supervision, enhancing the pertinence of penalties and increasing penalties.

In addition, it will also pay close attention to the "Regulations on supervision and examination of price and cost" formulated by the government, and strengthen cost supervision.

Administrative intervention is not a return to the "plan".

The State Council informed the analysis of the current overall price pattern, saying that there is no need to implement interim price intervention measures across the country.

The circular said that we should have a correct understanding and accurate understanding of temporary intervention measures.

First of all, the purpose of intervention is to maintain the basic stability of the general price level, safeguard the fundamental interests of the broad masses of the people, promote stable economic operation and social harmony and stability.

Second, there is a legal basis for the implementation of temporary price intervention measures.

The price law of China clearly stipulates that "when the prices of important commodities and services have risen significantly or are likely to rise significantly, the State Council and the people's governments of the provinces, autonomous regions and municipalities directly under the central government may adopt a limited price difference rate or the rate of profit, the prescribed price limit, the implementation of the price lifting declaration system and the system of filing a price record."

Third, even if necessary, temporary price intervention will not change the autonomy of enterprise pricing under market economy, and will not affect the general production and operation activities of enterprises, nor return to a highly centralized planned economic system.

Such interventions are temporary and complementary.

- News extension

Temporary intervention of price in China's precedent

Since the beginning of the new century, the price of some Chinese herbal medicines and disinfectants has risen sharply during the period of SARS in 2003, and the prices of the necessities of a small number of residents have risen rapidly in early 2008. The central government has launched two temporary price intervention measures nationwide throughout the country, which has played an important role in stabilizing the market price.

In view of the abnormal fluctuation of market prices, there is no precedent for the government to implement the necessary administrative intervention in developed countries. The United States, Germany, France, Japan and South Korea all have the practice and practice of government intervention in prices.