China issues new guideline to strengthen price governance mechanism

China has unveiled a guideline to further deepen price reform and improve the price governance mechanism.

The guideline was issued by the General Office of the Communist Party of China Central Committee and the General Office of the State Council.

It aims to improve the market price formation mechanism to promote efficient resource allocation, the price guidance mechanism for key areas' development and security, the price regulation mechanism to maintain reasonable price levels, and the transparent and predictable market price supervision mechanism.

China will enhance the market price formation mechanism by deepening market-oriented price reform, accelerating the market construction of key areas, and creating a competitive and orderly market environment.

Price guidance will target five critical areas: agricultural products to ensure food security, energy pricing to support green transition, public utilities for sustainable development, public services for equitable access, and innovative pricing approaches for safe and efficient public data utilization.

Control over the overall price level will be strengthened through better synergy between price policies and fiscal, monetary, industrial, and employment policies. Additionally, efforts will be made to strengthen the price stability of important commodities.

The guideline will further optimize the market price supervision mechanism, create a transparent and predictable regulatory environment for business entities, and protect the legitimate rights and interests of consumers.