China clamps down illegal pricing practices

The Chinese government has intervened in the pricing of some basic necessities and services. And it will boost the monitoring of important commodities, like grain, oil and meat.

The Chinese government has intervened in the pricing of some basic necessities and services.(Photo:xhwjj.cn)

According to the pricing law, the State Council and local governments can set profit ratios or price ceilings for key goods and services when prices rise too sharply. They can also require companies to apply for permission to increase prices.

Those who are found to have manipulated market prices and ignored the government's pricing suggestions could be fined up to 1 million yuan, or about 140,000 US dollars.

A State Council executive meeting was held on Monday. It said recent, increasingly-prominent illegal pricing practices had disturbed market order and affected people's daily lives.

It ordered local authorities to clamp down on illegal pricing activities. These include colluding to raise prices, hoarding goods and increasing prices, and spreading rumors about price hikes.

It also ordered a boost in production to ensure supplies ahead of the Chinese Lunar New Year, which falls on February 7th.