Seven Provinces Released Plans in Reforming Price Control
Seven provincial level regions recently released their plans to reform price control. These seven provinces are Beijing, Fujian, Hunan, Jiangsu, Inner Mongolia, Liaoning, and Hebei made their programs public. Beijing and Hubei stated that they will be lifted price controls in competitive sectors by 2020 and Fujian will follow at an earlier date of 2017. Reforms will also look into several key sectors namely medical services, transportation, education and resources wherein the timetable and roadmap have been created.
Beijing is improving the pricing mechanism that will help in easing traffic congestion, conduct research on the congestion charge and implement the Beijing 2013-2017 Clean Air Action Plan. Just last October, the State Council have issued the Opinions on Promoting the Pricing Mechanism Reform and based on the guidelines, China will lift the price controls on almost all the goods and services in the competitive sectors by 2017.
In 2020 china will have a sound pricing mechanism where the market will be playing a decisive role and create a rational and transparent pricing regulation and a properly enforced an anti monopoly law. In the recent years pricing reform have move with the price controls on medicine, transportation and telecommunications.