China to Loosen Price Controls on Raw Materials?

Question

(Yahoo, Aug 15, 2006) - Chinese regulators plan to go ahead with long-promised major commodity price reforms which would ramp up costs for both consumers and businesses, state press said.

"We will allow the scarcity of resources to determine their price," the China Daily quoted Bi Jingquan a key official at the National Development and Reform Commission, the nation's top planner, overseeing price reform.

"That's the basic principle of the price reforms."

Relying on the market to price raw materials and energy resources will increase costs but the government is determined to make prices more sensitive to market forces, said Bi, a vice minister at the commission.

The government has previously said that pricing needs to be less regulated, but the newspaper reported it was the first time that Beijing had come across with a clear and forceful message on the subject in a public forum.
source:http://www.zoomchina.com.cn/index.php?/content/view/11174/1/

Answer 1

What is your question?
Price reforms in China are unlikely to happen in the foreseeable future. Notice that in the above announcement that no date for the implementation of price reforms is mentioned.