![<?echo $_SERVER['SERVER_NAME'];?>](/template/twentyseventeen/skin/images/header.jpg)
With the approval of the State Council, on January 15, the National Development and Reform Commission (NDRC) issued the "Measures for the Implementation of Provisional Price Intervention Measures for Certain Important Commodities and Services" (hereinafter referred to as the "Measures"). These measures provided detailed guidelines on the scope of products subject to temporary price interventions, the forms of intervention, and the specific procedures for filing. The NDRC also conducted an interview with officials to explain the background, purpose, and implementation details of these new regulations.
Q: Why is temporary price intervention necessary?
A: Since May last year, China's overall consumer price level has seen a significant increase. By August, the year-on-year rise in consumer prices exceeded 6% for five consecutive months. In response, the State Council approved the initiation of temporary price interventions. The reasons include: first, some essential commodities have experienced sharp price increases. For example, in early January this year, the retail prices of soybean oil, pork, beef, and mutton in 36 large and medium-sized cities rose by 58%, 43%, 46%, and 51% respectively compared to the same period last year. Such increases have significantly impacted the lives of ordinary people, especially low-income groups.
Second, some companies have taken advantage of the situation to raise prices, engage in collusion, manipulate market prices, and exploit consumers. Others have hoarded goods, raised prices beyond reasonable levels, spread false information, and created unnecessary panic, further driving up prices. Third, unreasonable price hikes have affected social stability. Public dissatisfaction has grown, and some media outlets have exaggerated the issue, creating a sense of fear and uncertainty. To address these concerns, the State Council decided to implement temporary price interventions.
Q: How should we understand the start of temporary price intervention? Does it mean companies cannot raise prices at all?
A: Temporary price interventions are administrative measures taken under special circumstances to control unreasonable price increases in accordance with the law. They must be understood correctly and rationally. First, they are legal. According to Article 30 of China's Price Law, when the prices of important goods and services rise sharply or are expected to rise sharply, the State Council and local governments may impose price limits, set profit margins, or require price increase declarations and filings.
Second, the measures are rational. Only a small number of key commodities that directly affect basic living needs are included in the intervention. The government does not freeze prices or interfere with normal business operations. Instead, companies must report any price increases and justify them. The government will only intervene if the increase is deemed unreasonable.
Third, the intervention is temporary. Once the price situation stabilizes, the measures will be lifted. Fourth, it is an auxiliary tool. The main way to stabilize prices is through increased production and supply. Administrative interventions are only used to regulate the market and prevent excessive price hikes.
Q: What types of products are included in the temporary measures? Which companies need to report or file?
A: The products covered include finished grain, grain products, edible oils, meat products, milk, dairy powder, eggs, liquefied petroleum gas, and other essential goods. Companies producing these items and those operating at a certain scale must submit price increase applications or filings. The application process is mainly handled by provincial-level price authorities, while filings are usually managed at the municipal or prefectural level. The criteria for "reaching a certain scale" are based on market share and impact on local markets.
For example, companies with a large market share in industries such as instant noodles, edible oils, and dairy products are required to report directly to the NDRC.
Q: What is the difference between price increase declaration and price adjustment filing?
A: Price increase declaration involves submitting a request to the government before raising prices, while price adjustment filing requires reporting after the price change has occurred. The former applies mainly to producers, while the latter applies to wholesale and retail businesses. Declarations must be submitted 10 working days in advance, while filings must be made within 24 hours after the price change. The government can review the justification for the increase but does not necessarily approve it.
Q: Is the price of goods listed for price increase declaration considered government pricing?
A: No, it is not. The companies still retain the right to set their own prices. The government only reviews the justification and may intervene if the increase is deemed unreasonable. If no response is received within the specified time, the company’s proposal is considered approved.
Q: Under what conditions must companies perform the reporting or filing procedures?
A: Companies on the price increase declaration list must submit a written application 10 days before raising prices. Those on the price adjustment filing list must report any price changes exceeding 4% within 10 days, 6% within 30 days, and file the change within 24 hours.
Q: How does the government handle these filings?
A: The government has seven working days to respond to price increase applications. If no response is given, the company’s request is considered approved. For filings, the government has three working days to object. If no objection is made, the price change is considered acceptable.
Q: What legal consequences do companies face if they fail to comply?
A: Violations include failing to declare or file on time, raising prices before approval, or providing false information. The government can order corrections and impose administrative penalties, including fines or suspension of operations.
Q: There were reports that the NDRC announced a filing system for price increases starting in 2008. How does this relate to the current measures?
A: This report was incorrect. The NDRC has not issued such an announcement previously. All current measures are governed by the newly released "Measures."
Henan Dongfanglong Machine Manufacture Co., Ltd , https://www.dfloilm.com