The Beijing News:

Maintaining price stability is essential for boosting consumer confidence. In recent years, issues related to prices have attracted a lot of attention. What measures have been implemented to maintain price stability? Thank you!

Luo Wen: 

Thank you. The issue of price is always a concern for the entire society. This question goes to Ms. Gan.

Gan Lin:

Thank you for your question. Price acts as the “barometer” of the market economy and plays a vital role in all aspects of economic activity. It is closely related to every consumer.

As you may be aware, since last year, inflation rates in major economies worldwide have repeatedly hit new highs. Despite this situation, China has maintained generally stable prices, which is a significant achievement. In its efforts to maintain price stability, the SAMR has concentrated on its core functions and undertaken the following initiatives:

First, in terms of epidemic-related materials, we have strengthened supervision efforts to effectively respond to the rapid rise in prices of epidemic-related drugs, protective equipment and medical supplies. Since the outbreak of the pandemic, the price of epidemic-related materials has been a focus of concern for the CPC Central Committee, the State Council, and the general public. In particular, from the end of last year to the beginning of this year, some unscrupulous operators hoarded and even sold epidemic-related drugs and medical supplies at inflated prices. To address this issue, the SAMR quickly took action and issued a “Reminder and Warning Letter on Prices and Competitive Order of Epidemic-related Materials,” which clarified the “Nine Prohibitions” requirement. In addition, a nationwide special campaign was launched to stabilize prices and ensure the quality of epidemic-related drugs and medical supplies. This campaign has been ongoing for half a year and is still in progress. As of now, 6,253 cases have been filed nationwide, with a penalty amount of 39.39 million yuan. These efforts have effectively maintained price stability in epidemic-related drugs and medical supply markets across the country.

Second, we have implemented targeted measures for major commodity categories and critical links to promote stable and healthy socio-economic development. Commodity prices are prone to be heavily impacted by the international markets and have a notable transmission effect. The SAMR has focused on three key areas: key types of commodities, critical periods and major links. We have also continued to intensify our supervision and law enforcement efforts. To address issues related to electricity supply caused by rising coal prices, we have conducted price inspections in major coal-producing areas and severely punished 21 companies that violated the law. To address issues related to spring farming preparations impacted by price spikes in chemical fertilizer, we have punished three fertilizer companies for driving up potash fertilizer prices. To combat instability in industrial chains caused by rising iron ore prices, we have actively provided administrative guidance, issued warnings and reminders, and conducted research and inspections. By guiding market expectations appropriately, we have effectively curbed irrational price increases.

Third, we have focused on key areas and specialty products related to people's livelihoods to resolutely protect the legitimate rights and interests of consumers. Since consumers are mostly concerned about prices in their daily lives, the SAMR has consistently adopted a people-centered approach to overseeing prices in sectors relevant to people's livelihoods, especially in areas such as education, medical care and health. We have launched special crackdown campaigns to address price-related wrongdoings in the abovementioned key sectors, with particular efforts to curb arbitrary price increases and charges. In response to problems with off-campus training, such as “fabrication, exaggeration, and inducement,” we have imposed maximum penalties on 15 agencies based on the Price Law and the Anti-unfair Competition Law. Regarding the issue of overpriced mooncakes, we organized an intensive operation regarding food security, pricing, packaging, and advertising. We conducted inspections in over 80,000 hotels, shops, and supermarkets. As many of you may have noticed, during the Mid-Autumn Festival last year, the average price of mooncakes across the country dropped significantly compared to previous years. Also, we swiftly conducted inspections on “ice cream assassins” (ice creams with unclear or hidden prices that turn out to be excessively high when it's time to pay), actively responded to public concerns, and guided businesses to strengthen self-discipline in pricing and operate in accordance with laws and regulations.

In the next step, the SAMR will diligently implement the decisions and arrangements of the CPC Central Committee and the State Council and continuously enhance the forward-looking, targeted, and effective supervision of prices, better serve the stable operation of the macroeconomy, and better safeguard the interests of the people. Thank you!