The National Reform and Development Committee (NDRC), China's top economic planner, renewed its efforts to curb inflation by asking local governments to prevent industrial associations from forming "pricing monopolies," according to a circular issued by NDRC recently.
The move came after NDRC found some price hikes were orchestrated by industrial groups. Earlier this year, the NDRC criticized a papermaking industrial association in Zhejiang Province for raising prices of paper products after meeting with its members.
The NDRC urged local price watchdogs to set up ad hoc departments this year to combat price monopolies, select a major industry each year for a price monopoly investigation and establish a system for publishing investigation results.
As the NDRC tries to keep prices in check, it has pushed for reform of prices in the energy sector. A pilot program will be rolled out for water resources next year, paving the way for price reforms in electricity, gas and oil.
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