Trying to get inflation under control, China is beginning to control the prices.
The ministries said that, in principle, the government would not introduce any new price changes for the rest of the year. “All current rules on goods and service prices controlled by the government should be strictly implemented. Any unauthorized price rise is strictly forbidden,” the statement said.
So much for all the talk of market economy slowly emerging in China under one-party rule. One of the concerns it seems is to spare the poor from rising prices. Although concerns can sometimes be noble, the means of addressing them matter as much. And price controls in this case is a way of learning from the worst – they hurt, not help the poor.
Published Date: September 20, 2007