From Chinese Press

Reduce prices of necessities

(China Daily)
Updated: 2011-03-24 08:43

At a recent high-level forum, Minister of Commerce Chen Deming said the government would promote competition and strengthen rules to ensure that some luxury goods do not cost more at home. But it is more important to reduce the prices of daily commodities, many of which are costlier in China than even in advanced countries, says an article in Qilu Evening News. Excerpts:

Some daily necessities cost more in China than overseas. Take broadband charges for example. According to a report issued by the State Information Center last year, the average monthly charge for broadband connection in China is 83.8 yuan ($12.79), 18 times more than in South Korea.

If we were to consider the per capita income of the two countries, the charge in China is 124 times more than in South Korea. So we can imagine the burden Chinese consumers are carrying.

The Chinese government, no doubt, has made life easier and more comfortable for people in many ways. But we cannot ignore the problems. For example, the fare for high-speed railways is very high and far beyond the means of ordinary people.

If calculated according to purchasing power parity, prices of high-speed railway tickets in China are much higher than in any developed country.

A netizen in Hangzhou, Zhejiang province, and her friend in Boston, US, conducted a survey on 21 commodities of daily use, and found that 12 of them cost more in Hangzhou, even though the per capita income in the Chinese city is $4,024 (according to 2009 figures) compared with $32,255 in Boston.

The costs of housing, medical service, education and social security are higher than many other countries, too.

So it is imperative that the government take urgent steps to reduce prices of daily necessities. This will not only improve the quality of people's life, but also raise their confidence and enhance the government's credibility.

(China Daily 03/24/2011 page9)