(China Daily)
Updated: 2007-08-09 07:28

To keep in check arbitrary price increases on trade, we must hold fast to trade associations, giving full play to their supervisory and coordinating functions, says an article in People's Daily. The following is an excerpt:

The National Development and Reform Commission (NDRC) required on Monday, August 6, that pricing departments at all levels should inspect food manufacturers, wholesalers and retailers of their respective regions. Living necessities like grain, oil, meat, poultry, eggs and milk are listed as key items to be checked. Unjustified price activities such as price collusion and price cheating will be strictly examined.

It is noticeable that the NDRC pointed out that relevant trade associations should not plot together to manipulate price in any manner.

After years of administrative reforms, most of the administrative bureaus' governing local industrial and commercial enterprises have been cancelled. Those enterprises have formed trade associations to coordinate their business activities and collectively resist market risks.

Trade associations have taken a bumpy road to grow. After many years of efforts, they have made great progress. People realize that trade associations are important although they have no right to manage personnel, finance and resources of member enterprises. Various types of trade associations have done lot of work in fields like trade planning, information and experience sharing as well as coordination.

They have a relatively strong supervisory power of a trade's price movement since they are familiar with raw materials' prices and production costs. Therefore, it's difficult for profiteers to play tricks before them.

Trade associations can actually be considered the essence of trade. To prevent trade from making unjustified price rises, we should grasp this essence. We should educate not only enterprises but also trade associations to understand that they should shoulder the responsibility of safeguarding social stability while maintaining their own interests.

(China Daily 08/09/2007 page8)