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Report on China's economic, social development plan [Full Text]

(Xinhua)
Updated: 2008-03-21 11:23

We will work to prevent excessively rapid increase in the overall level of prices.

1) Production and supply of basic necessities, including grain, edible oil, meat and other commodities, whose supply is tight, will be increased to ensure uninterrupted supply of such goods. We will continue effective implementation of the system of provincial governors assuming responsibility for the "rice bag" program and city mayors assuming responsibility for the "vegetable basket" program to increase the government's responsibility for ensuring an adequate supply of basic necessities and stabilizing consumer prices. We will strictly control the use of grain for industrial purposes and export of grain, and resolutely curb reckless expansion of the capacity for downstream corn processing. The reserve system will be improved and import of major consumer goods that are in short supply domestically will be increased appropriately.

2) We will strictly control the prices of commodities and services under government regulation. We must maintain an appropriate pace and intensity for government price regulation. There should be no price increases in the near future for items regulated by the central government such as refined petroleum, natural gas and electric power, for public utilities and services regulated by local governments such as electricity, gas, water, heating and public transport and for admission to tourist sites. We will not allow any rise in all tuition and boarding costs for schools at all levels and of all types and will continue to stabilize charges for medical care. Essential adjustments in the prices for resource products and public services will be tightly controlled to prevent price spirals.

3) Regulation of market prices will be strengthened. Temporary measures will be taken earnestly when needed to hold down the prices of some key basic necessities. We will continue to rigorously oversee and review educational charges, medical costs, telecommunications rates, prices of agricultural supplies and other charges and fees related to farmers. We will severely punish people who fabricate and spread price rise rumors, conspire to raise prices, hoard goods for speculation and engage in price gouging.

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