China Revives Price Controls on Foods: Chinese...

China Revives Price Controls on Foods: Chinese authorities are slapping price controls back on grain and other staple foods after rumors of shortages led to sharp price increases, official newspapers announced. The move comes just seven months after the government lifted a 40-year-old grain rationing and price control system as part of its efforts to build a market economy. Vice Premier Zhu Rongji, regarded as a reformer, announced a series of indirect moves to lower grain prices, including selling state reserves of grain and lowering the prices in state-owned shops. The official Xinhua News Agency quoted Zhu as saying the government needed price stability to implement a series of important market reform measures next year, including reorganizing the banking and currency exchange systems. Beijing city officials took more drastic measures than Zhu outlined, reimposing price controls on 27 food items. The China Daily newspaper said the city government moved after the prices of rice, cooking oil, pork and eggs rose 30% to 40% last week.