Govt pledges to erase illegal charges
Updated: 2012-01-11 07:40
By Li Woke (China Daily)
|
|||||||||||
BEIJING - Five ministries on Tuesday reiterated a pledge to stabilize commodity prices by cracking down on illegal charges foisted on suppliers.
"Maintaining price stability is an important step of the 2012 economic policies," Peng Sen, deputy chief of the National Development and Reform Commission, told a national teleconference on Tuesday.
"Excessive intermediaries and high costs are major factors pushing up the prices of goods," Peng said.
The five departments, including the Ministry of Commerce and National Development and Reform Commission, previously pledged to stabilize commodity prices in December by issuing a work plan to crack down on illegal charges levied by retailers on suppliers.
"Part of the problem between suppliers and retail giants is caused by market imbalance," the Commerce Ministry said. "As the country has too many suppliers and a limited number of large retailers, the latter have gained tremendous leverage over suppliers."
In 2010, French retail giant Carrefour was involved in several disputes with suppliers, including Master Kong, a Taiwan-based instant noodles supplier, and China National Cereals, Oils and Foodstuffs Corp, after the retailer allegedly refused to lower its high entrance fees and sales commissions.
The disputes started when Kraft Foods, the world's second biggest food and confectionery maker, halted shipments of its Oreo line of products to Chinese retailer Lianhua Supermarket Holdings after talks broke down over profit sharing.
According to management consultant McKinsey, suppliers in China typically pay retailers a "commission" or "rebate" of 10 to 15 percent, but for some retailers, that number is more than 20 percent. And that's not including some form of under-the-table commission.
"So the suppliers have to raise their product prices to offset all the charges demanded by retailers," said a Fujian-based retailer, who declined to be identified.
In July last year, the consumer price index surged to a three-year record high of 6.5 percent, putting pressure on the government to tame inflation.
Today's Top News
President Xi confident in recovery from quake
H7N9 update: 104 cases, 21 deaths
Telecom workers restore links
Coal mine blast kills 18 in Jilin
Intl scholarship puts China on the map
More bird flu patients discharged
Gold loses sheen, but still a safe bet
US 'turns blind eye to human rights'
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
All-out efforts to save lives |
Liaoning: China's oceangoing giant |
Poultry industry under pressure |
'Spring' in the air for NGOs? |
Boy set to drive Chinese golf |
Latest technology gets people talking |