Recently, the General Office of the CPC Central Committee and the General Office of the State Council issued opinions on improving the price governance mechanism.
The General Office of the Communist Party of China Central Committee and the General Office of the State Council have recently unveiled a guideline to improve the price government mechanism.
On March 9, 2025, consumers shopped in a supermarket in Gaomi City, Weifang City, Shandong Province. Image source: Xinhua News Agency
【Knowledge Points】
Price is the “bull’s nose” of resource allocation efficiency under market economy conditions. In the past 10 years, in accordance with the decisions and deployments of the CPC Central Committee and the State Council, price reform has been deepened and achieved remarkable results. 97.5% of the prices of goods and services in the whole society have been formed by the market, greatly optimizing resource allocation; a government pricing system with “permitted cost + reasonable income” as the core has been basically established, and a “four pillars” of scientific pricing has been built; the national consumer price index (CPI) has an average annual increase of about 1.6%, providing strong support for the healthy development of the economy and society. Price governance is an important part of macroeconomic governance. my country’s economy has shifted from a stage of high-speed growth to a stage of high-quality development. It is urgent to further deepen price market-oriented reform, improve price governance capabilities, and strengthen the guiding role of price signals. In order to further deepen price reform and improve the price governance mechanism, the General Office of the CPC Central Committee and the General Office of the State Council issued the “Opinions on Improving the Price Governance Mechanism”.
From the perspective of improving the price governance mechanism, the full text of the opinion covers all areas of price work such as price reform, price regulation, and price supervision. Four mechanisms are deployed and improved, namely, improving the market price formation mechanism that promotes the efficient allocation of resources, innovating the price guidance mechanism that serves the development and safeness of key areas, improving the price regulation mechanism that promotes the maintenance of a reasonable level of prices, and optimizing a transparent and predictable market price supervision mechanism. By improving the four mechanisms, we will accelerate the construction of a high-level price governance mechanism with effective market, moderate regulation and scientific supervision, improve resource allocation efficiency, improve the level of macroeconomic governance, and better serve the Chinese-style modernization construction. The opinions are clear that improving the price governance mechanism should adhere to the following principles: adhere to the direction of reform of the socialist market economy; adhere to systematic concepts and comprehensive policies; adhere to problem-oriented and reform and innovation; adhere to the rule of price according to law.
【Important Speech】
Give full play to my country’s potential and role as the world’s largest market, clarify the strategic direction of supply-side structural reform, and consolidate the basic trend of my country’s economy in a stable and long-term positive manner.
Efforts should be made to leverage China’s potential and role as the world’s largest market, clarify the strategic direction of supply-side structural reform, and consolidate the basic trend of steady economic growth with a sound momentum in the long term.
——On May 23, 2020, Xi Jinping’s important speech when visiting the economic committee members who attended the Third Session of the 13th National Committee of the Chinese People’s Political Consultative Conference
【Related Words】
Market price formation mechanism
market price formation mechanism
Price mechanism reform
reform of price mechanism
Price control mechanism
price control mechanism
China Daily Network English Dots and Tianjin Studio (this article was first published on the “Study Strong Country” learning platform)
(Reprinting is not allowed without authorization)
[Editor in charge: Chen Danni]
