China to crack down on price rigging, heavy fines to be handed out

08:49, July 14, 2010      

Email | Print | Subscribe | Comments | Forum 

China will fine individuals and companies up to 2 million yuan (295,000 U.S. dollars) for circulating misleading or false information about price hikes, the country's top economic planner disclosed Tuesday.

The announcement by the National Development and Reform Commission (NDRC), the top economic planning agency, was part of efforts by the NDRC to curb price manipulation and profiteering in the country.

The suggested punishment measures to combat commodity hoarding and forcing up prices are now open to public debate until Aug. 13, after which it will be submitted to China's top legislature for a legislative reading, the NDRC said in an announcement on its website.

In case of serious offences, those who break the price regulations will lose their business licenses and be subject to confiscation of their illegal gains and receive fines up to five times their illegal gains, the NDRC said.

The NDRC further said it believed the price regulations would be helpful to handle the inflationary expectation and stabilize price levels.

Earlier this month, the NDRC set up two offices dedicated to control monopolistic behavior and curb market manipulation while it fined a number of farm produce traders in northeast China for conspiring to push prices higher.

The hoarding of goods was mainly to blame for skyrocketing prices of garlic, mung bean and other farm products this year, jeopardizing the Chinese government's goal to keep the annual consumer price inflation at 3 percent in 2010.

China reported a 3.1 percent consumer price index year-on-year increase in May, exceeding the government's CPI growth target for the first time this year.

Last month the NDRC projected that China's CPI rate would be around 2.6 percent in the first half of this year. The National Bureau of Statistics has yet to announce the CPI data expected to be released this week.



  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
  • Photo taken on Sept. 29, 2011 shows strong wind blows trees in Sanya, south China's Hainan Province. Typhoon Nesat heads towards south China and is moving at an average wind speed of 20 km per hour toward the west coast of China's Guangdong Province. (Xinhua/Hou Jiansen)
  • A fallen tree is seen on a road in Qionghai, south China's Hainan Province, Sept. 29, 2011. Typhoon Nesat was predicted to land in Hainan later Thursday, bringing heavy rainfalls to the island. (Xinhua/Meng Zhongde)
  • Arash Kamalvand (L) of Iran spikes the ball during the semifinal against South Korea at the 16th Asian Men's Volleyball Championship in Tehran, Iran, Sept. 28, 2011. Iran won 3-1 to advance to the final. (Xinhua/Ahmad Halabisaz)
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
Hot Forum Discussion