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Xinhua News Agency, Beijing, October 15th
Some opinions of the Central Committee of the Communist Party of China and the State Council on promoting the reform of price mechanism
(12 October 2015)
The price mechanism is the core of the market mechanism, and the market determines the price, which is the key for the market to play a decisive role in resource allocation. Since the reform and opening up, as an important part of the economic system reform, the price reform has been continuously promoted and deepened, and the prices of most competitive commodities have been liberalized, which has played an important role in establishing and improving the socialist market economic system and promoting sustained and healthy economic and social development. Especially in recent years, the pace of price reform has been greatly accelerated, the prices of a large number of goods and services have been liberalized one after another, and the marketization of prices in refined oil, natural gas, railway transportation and other fields has been significantly improved. At the same time, we should also see that the price reform in some key areas and key links needs to be deepened, the government pricing system needs to be further improved, and the market price behavior needs to be further standardized. In order to promote the price reform to develop in depth and speed up the improvement of the price mechanism mainly determined by the market, we hereby put forward the following opinions.
I. General requirements
(1) Guiding ideology. Fully implement the spirit of the 18th CPC National Congress and the 2nd, 3rd and 4th Plenary Sessions of the 18th CPC Central Committee, actively adapt to and lead the new normal of economic development in accordance with the decision-making arrangements of the CPC Central Committee and the State Council, closely focus on making the market play a decisive role in resource allocation and better play the role of the government, comprehensively deepen price reform, improve the price formation mechanism in key areas, improve the government pricing system, strengthen market price supervision and anti-monopoly law enforcement, and create a good price environment for economic and social development.
(2) Basic principles
-Adhere to market decisions. Correctly handle the relationship between the government and the market, and hand over all the prices that can be formed by the market to the market, and the government will not interfere improperly. We will promote price reform in water, oil, natural gas, electricity, transportation and other fields, liberalize prices in competitive links, and give full play to the role of the market in determining prices.
-adhere to the combination of release and management. Further enhance the awareness of the rule of law, fairness and responsibility, strengthen supervision after the event, and optimize price services. In the field of government pricing, we must strictly regulate the government pricing behavior, and resolutely manage the thin tube in place; In the field of independent pricing, operators should improve rules, strengthen law enforcement, maintain market order, safeguard and promote fair competition, and promote the construction of modern market system.
-Persist in reform and innovation. Explore and innovate in price formation mechanism, regulation system and supervision mode, respect the initiative of grassroots and the masses, and promote the transformation of price management from direct pricing to standardizing price behavior, creating a good price environment and serving macro-control. Give full play to price leverage to promote economic transformation and upgrading and improve quality and efficiency.
-Adhere to steady and prudent progress. Price reform should be coordinated with the reform of fiscal revenue, income distribution, industry management system, etc., reasonably distinguish between basic and non-basic needs, take into account the relationship between upstream and downstream of the industry, enterprise development and people’s livelihood security, economic efficiency and social equity, economic development and environmental protection, grasp the opportunity, rhythm and intensity, effectively prevent all kinds of risks and ensure stability and order.
(3) Main objectives. By 2017, the prices of competitive fields and links will be basically liberalized, and the scope of government pricing will be mainly limited to important public utilities, public welfare services and network-based natural monopoly links. By 2020, the market-determined price mechanism will be basically perfect, a scientific, standardized and transparent price supervision system and anti-monopoly law enforcement system will be basically established, and the price control mechanism will be basically sound.
Second, deepen price reform in key areas and give full play to the role of the market in determining prices.
Focusing on making the market play a decisive role in resource allocation, we will accelerate the pace of price reform, further promote decentralization, combination of liberalization and management, optimize services, respect enterprises’ independent pricing rights and consumers’ free choice, and promote the free flow and fair trade of goods and factors.
(4) Improve the price formation mechanism of agricultural products. Make overall use of the international and domestic markets, pay attention to the role of the market in forming prices, and the prices of agricultural products are mainly determined by the market. In accordance with the principle of "emphasizing key points, keeping and releasing", based on China’s national conditions, we will implement differentiated support policies for different varieties, adjust and improve the "yellow box" support policies, gradually expand the scale and scope of the "green box" support policies, protect farmers’ enthusiasm for production, promote the sustainable development of agricultural production, and ensure the basic self-sufficiency of grains and the absolute safety of rations. We will continue to implement and improve the minimum purchase price policy for rice and wheat, reform and improve the corn purchasing and storage system, continue to implement the pilot reform of cotton and soybean target prices, and improve the subsidy payment method. Strengthen the cost investigation and price monitoring of agricultural products, accelerate the establishment of a global agricultural data investigation and analysis system, and provide important support for the government to formulate policies such as agricultural product prices and agricultural subsidies.
(5) Accelerate the marketization of energy prices. In accordance with the general idea of "managing the middle and letting go of both ends", we will promote the reform of energy prices such as electricity and natural gas, promote diversified competition among market players, handle and gradually reduce cross-subsidies, and restore the attributes of energy commodities. Opportunity to liberalize the price of refined oil, comprehensively rationalize the price of natural gas as soon as possible, speed up the liberalization of natural gas sources and sales prices, orderly liberalize the on-grid electricity price and sales electricity price other than public welfare, and establish a mechanism in which energy prices are mainly determined by the market. Separate the transmission and distribution price from the selling price in the formation mechanism, independently verify the transmission and distribution price, and gradually realize that the selling price other than public welfare is formed by the market. According to the principle of "allowable cost plus reasonable income", the transmission and distribution prices of power grid and natural gas pipeline network are reasonably formulated. Expand the pilot scope of transmission and distribution price reform, gradually cover all provincial power grids, scientifically verify the permitted income and distribution price of power grid enterprises, change the supervision mode of power grid enterprises, and gradually form an independent transmission and distribution price system with clear rules, reasonable level, strong supervision and scientific transparency. Before liberalizing the competitive link electricity price, we should improve the linkage mechanism of coal-electricity price and the benchmark electricity price system, so that the electricity price can better reflect the market demand and cost changes.
(six) improve the environmental service price policy. Coordinate the use of environmental taxes, fees and related service price policies, increase the adjustment of economic leverage, gradually make the expenses borne by enterprises to discharge various pollutants higher than the cost of active treatment, and improve the enthusiasm of enterprises to actively control pollution and reduce emissions. According to the principle of "pollution pays, fair burden, compensation cost and reasonable profit", the charging standard of sewage treatment should be raised reasonably, and the charging standard of urban sewage treatment should not be lower than the cost of sewage treatment and sludge disposal. We should explore the establishment of an adjustment mechanism linking the treatment service fee allocated by the government to sewage treatment enterprises with the sewage treatment effect, and implement an encouraging price policy for the resource utilization of sewage treatment. Actively promote the pilot work of paid use and trading of emission rights, improve the trading price system of emission rights, and use market means to guide enterprises to take the initiative to control pollution and reduce emissions.
(7) Rationalize the price of medical services. Focusing on the goal of deepening the reform of the medical and health system, in accordance with the principle of "total control, structural adjustment, rising and falling, and gradual arrival", we will actively and steadily promote the reform of medical service prices, rationally adjust the price of medical services, and simultaneously strengthen the convergence of relevant policies such as prices and medical insurance to ensure the sustainable development of medical institutions, affordable medical insurance funds, and no increase in the burden on the masses. Establish a dynamic price adjustment mechanism based on changes in cost and income structure, and basically straighten out the price comparison relationship of medical services by 2020. Implement the policy of adjusting the price of medical services in non-public medical institutions. The price of medical service items in public medical institutions shall be managed by classification, and the price of medical service items with sufficient market competition and strong individualized demand shall be regulated by the market. The service items paid by the medical insurance fund shall be negotiated and reasonably determined by the medical insurance agency and the medical institution. Further improve the drug procurement mechanism and give play to the role of medical insurance in controlling fees. The actual transaction price of drugs is mainly formed by market competition.
(eight) improve the transportation price mechanism. Gradually liberalize the price in the competitive field of railway transportation and expand the scope of independent pricing by operators; Improve the dynamic price adjustment mechanism of railway freight and highway, and simplify the freight rate structure; Construct a passenger transport fare system based on train speed and grade and reflecting the difference in service quality. Gradually expand the scope of independent pricing by operators in areas such as road passenger transport, civil aviation domestic route passenger transport, port operation, etc., timely liberalize prices in competitive areas, and improve price charging rules. Liberalize postal competitive service charges and straighten out the structure and level of postal service charges. Implement a parking fee policy that is conducive to promoting the construction of parking facilities, alleviating urban traffic congestion, and effectively promoting the priority development of public transportation and the utilization of public road resources. Further improve the formation mechanism of taxi freight rate, give play to the leverage of freight rate to adjust the relationship between supply and demand in taxi transportation market, establish and improve the dynamic adjustment mechanism of taxi freight rate and the linkage method between freight rate and fuel price.
(nine) innovative public utilities and public service price management. Clearly define the rights and obligations of the government, enterprises and users, distinguish between basic and non-basic needs, establish and improve the coordination mechanism between financial input and price adjustment of public utilities and public welfare services, promote the cooperation between government and social capital, ensure the sustainable development of the industry and meet diversified needs. We will fully implement the ladder price system for residents’ water, electricity and gas consumption, and implement the charging system for heating according to the heat consumption, and further improve it according to the actual situation. Education, culture, pension, funeral and other public welfare services should be combined with the reform process of government procurement services, and classified management should be implemented. Students in public schools are exempted from tuition and miscellaneous fees in the compulsory education stage, and tuition fees in public kindergartens, high schools (including secondary vocational schools) and colleges and universities are managed as administrative fees; For-profit private schools charge their own fees, and the charging policy for non-profit private schools is determined by the provincial government according to the local actual situation in the direction of marketization. The old-age service institutions invested by the government are free of charge for the "three noes" elderly according to law; For other elderly people with special difficulties to provide old-age services, the bed fee and nursing fee are subject to government pricing management, and the prices of other old-age services are independently priced by operators. Promote the price reform of tickets and related services in tourist attractions by classification. Promote public utilities and public service operators to increase information disclosure, accept social supervision, and protect the public’s right to know and supervise.
Third, establish and improve the government pricing system, so that power can operate in the sun.
For a few reserved government pricing projects, it is necessary to promote the listing of pricing projects, standardize pricing procedures, strengthen cost supervision and examination, promote cost disclosure, resolutely manage the thin tube and manage it in place, minimize discretion, and promote the openness and transparency of government pricing.
(ten) to promote the listing of government pricing projects. On the basis of accelerating price reform, the central and local governments should formulate and publish a new government pricing catalogue before 2016, and limit the scope of government pricing mainly to important public utilities, public welfare services and network-based natural monopoly links. All government pricing projects will be included in the government pricing catalogue management. The pricing items in the catalogue should be clearly defined item by item, so as to ensure that there is no pricing right outside the catalogue, and government pricing should be included in the list of rights and responsibilities. Regularly evaluate the effectiveness of price reform and the degree of market competition, and timely adjust specific pricing items.
(eleven) standardize the government pricing procedures. For projects included in the government pricing catalogue, it is necessary to formulate specific management measures, pricing mechanisms, cost supervision and examination rules, and further standardize pricing procedures. Encourage and support third parties to put forward suggestions on price adjustment schemes and participate in price hearings. Improve the system of public participation, legality review and expert argumentation in the process of government pricing, ensure that the working procedures are clear, standardized, open and transparent, actively accept social supervision, and effectively restrain government pricing behavior.
(twelve) to strengthen the cost supervision and examination and cost information disclosure. Adhere to the principle of cost supervision and examination, take cost supervision and examination as an important procedure for the government to formulate and adjust prices, and constantly improve the cost supervision and examination mechanism. In accordance with the provisions of the implementation of cost supervision and examination, to gradually establish and improve the cost disclosure system. Operators of public utilities and public welfare services shall disclose their costs in accordance with the provisions of government pricing agencies, which shall disclose the conclusions of cost supervision and examination before setting and adjusting prices.
Four, strengthen market price supervision and anti-monopoly law enforcement, and gradually establish the basic position of competition policy.
Clean up and abolish all kinds of regulations and practices that hinder the national unified market and fair competition, prohibit and punish all kinds of illegal preferential policies, establish fair, open and transparent market price supervision rules, vigorously promote market price supervision and anti-monopoly law enforcement, and oppose monopoly and unfair competition. Accelerate the establishment of a coordination mechanism between competition policy and industrial and investment policies, implement a fair competition review system, and promote the construction of a unified, open and competitive market system.
(thirteen) improve the rules of market price behavior. In the field of operators’ independent pricing, it is necessary to formulate price behavior rules and supervision measures according to law for goods and services that have a great impact on the economy and society, especially those closely related to people’s livelihood; In areas where there are insufficient market competition, unequal status of both parties to the transaction, asymmetric market information, etc., it is necessary to study and formulate corresponding bargaining rules, price behavior norms and guidelines, improve the system provisions such as clearly marked prices and publicity of fees, and reasonably guide operators’ price behavior.
(fourteen) to promote broadband network speed and fee reduction. Standardize telecom tariff behavior, promote broadband network speed-up and fee reduction, and provide strong support for the development of "internet plus". Guide and promote telecom enterprises to simplify the tariff structure, effectively improve the cost performance of broadband internet access and other services, and provide more favorable tariff schemes for urban and rural low-income groups. Supervise and urge telecommunications enterprises to formulate reasonable tariff standards and charging methods for Internet access services, and promote interconnection between telecommunications networks. It is strictly forbidden to use unfair pricing behavior to hinder the competition of telecommunications services and disrupt the market order. Strengthen the supervision of tariff behavior, clean up unreasonable fees such as entrance fees, coordination fees and sharing fees in the construction of broadband networks, and severely crack down on price violations.
(fifteen) to strengthen market price supervision. Establish and improve a market price supervision system with institutional authority, complete laws, perfect mechanisms and strong implementation, effectively prevent, timely stop and investigate all kinds of price violations according to law. Adhere to the combination of daily supervision and special inspection, strengthen price supervision in the field of people’s livelihood, focus on solving outstanding problems reflected by the masses, and protect consumer rights and interests. Strengthen supervision and inspection, and ensure that operators enjoy independent pricing power according to law for the prices of goods and services that have been liberalized by the government.
(sixteen) to strengthen anti-monopoly law enforcement. Pay close attention to competition dynamics, start anti-monopoly investigation on suspected monopolistic behaviors in time, make efforts to investigate and deal with monopolistic behaviors such as reaching a monopoly agreement, abusing market dominance and abusing administrative power to eliminate competition restrictions, and announce the handling decisions according to law to maintain a fair competition market environment. Establish and improve the clue collection mechanism of monopoly cases and broaden the sources of cases. Study and formulate relevant anti-monopoly guidelines and improve market competition rules. Promote operators to strengthen anti-monopoly compliance construction.
(seventeen) improve the price social supervision system. Give full play to the role of the 12358 price reporting management information system of the national four-level network, and encourage consumers and operators to participate in price supervision together. Strengthen the analysis of report data, regularly publish analysis reports to warn operators and remind consumers. Establish and improve the team of price supervisors of residents in streets, communities, towns and villages, and improve the price social supervision network. Relying on the social credit system, we will accelerate the construction of price integrity, build the price credit files of operators, carry out the activities of establishing price integrity units, set up a "blacklist" of price untrustworthy people, and jointly punish the untrustworthy behaviors that constitute price violations. Encourage and support the news media to actively participate in price social supervision, and improve the supervision and guidance mechanism of public opinion.
Five, give full play to the role of price leverage, better serve macro-control.
While comprehensively deepening reform and strengthening price supervision, strengthen and improve macro-control and keep the overall price level basically stable; Give full play to price leverage, promote energy conservation, environmental protection and structural adjustment, and promote economic transformation and upgrading.
(eighteen) to strengthen the overall price level control. Strengthen the coordination of prices with financial, monetary, investment, industrial, import and export, material reserve and other policy means, rationally use legal means, economic means and necessary administrative means to form a joint force of policies, and strive to keep the overall price level within a reasonable range. Strengthen the early warning of deflation and inflation, and formulate and improve corresponding prevention and control plans. Improve the price monitoring and early warning mechanism and emergency response system, build a commodity price index system, improve the important commodity reserve system, and enhance the overall price level control ability.
(nineteen) improve the price policy of energy conservation and environmental protection in the production field. Establish a price system conducive to energy conservation and emission reduction, and gradually make energy prices fully reflect the cost of environmental governance. Continue to implement and adjust environmental protection electricity price policies such as desulfurization, denitrification and dust removal in a timely manner. Encourage all localities to study and improve the differential electricity price, water price and other price measures for backward processes, equipment and products in industries with high energy consumption, high pollution and overcapacity according to the actual industrial development and structural adjustment needs, combined with the process of system reform in the fields of electricity and water, and implement electricity price policies based on unit energy consumption exceeding quota for industries such as electrolytic aluminum and cement, so as to accelerate the elimination of backward production capacity and promote the transformation and upgrading of industrial structure.
(twenty) improve the system of paid use of resources and ecological compensation system. Accelerate the reform of natural resources and their products prices and fiscal and taxation systems, and fully reflect market supply and demand, resource scarcity, ecological environment damage costs and restoration benefits. Improve the resources and environment charging fund or paid use charging policy involving soil and water conservation, mines, grassland vegetation, forest vegetation, ocean dumping, etc. We will promote the reform of water resources fees, study the collection of water resources taxes, and promote the pilot projects in areas where groundwater is over-exploited. Take comprehensive measures to gradually rationalize the price of water resources, deepen the comprehensive reform of agricultural water prices, and promote the protection and economical use of water resources.
(twenty-one) innovation to promote regional development of the price policy. For government and social capital cooperation projects with regional characteristics, the price management should be liberalized as soon as possible if the competition conditions are met; If price management is still needed, explore the decentralization of pricing authority to local governments, improve the flexibility of price adjustment, and mobilize the enthusiasm of social investment. Accelerate the formulation and improvement of the price policy that adapts to the development of the free trade pilot zone, decentralize it to the autonomous implementation in the zone as soon as possible, and promote fair competition among various market players.
VI. Safeguard measures
The price work involves a wide range, strong policy and high social concern, which affects the whole body. We must strengthen the organization and implementation, scientifically formulate plans, improve supporting measures, and do a good job of public opinion guidance to provide a strong guarantee for accelerating the improvement of the price mechanism mainly determined by the market.
(twenty-two) to strengthen the organization and implementation. All relevant departments in all regions should fully understand the importance, urgency and arduousness of accelerating the improvement of the price mechanism mainly determined by the market, unify their thinking and form a joint force, so as to fight a tough battle with the spirit of "hard bones". It is necessary to conduct in-depth research and scientific argumentation, listen to opinions from all sides extensively, highlight key points, advance by classification, refine the work plan, summarize and evaluate in time, and advance steadily and orderly, so as to achieve practical results. If it has a significant impact and does not have the conditions for comprehensive opening, it can carry out pilot projects first, play a leading role in demonstration, and accumulate experience that can be replicated and promoted. It is necessary to pay close attention to implementation, clarify the timetable, road map and responsibility form, regularly supervise and strengthen accountability, and make every effort to get through the "first mile" of policy introduction, the "middle obstruction" of policy implementation and the "last mile" of policy implementation to ensure that all measures take root.
(twenty-three) improve the price legal system. Closely combined with the actual work of price reform, regulation and supervision, we will speed up the revision of relevant laws and regulations such as the price law, improve the price laws and regulations with the price law and anti-monopoly law as the core, formulate or revise government pricing behavior rules, cost supervision and examination, price monitoring, price hearings, standardize market price behavior and other rules and regulations in a timely manner, and comprehensively promote the rule of law.
(twenty-four) to strengthen capacity building. While reducing government pricing matters, we should pay attention to price monitoring and early warning, cost investigation and supervision, price regulation, market price supervision and anti-monopoly law enforcement, price public services, etc., and strengthen team building at the same time, enrich and strengthen the work force and consolidate the work foundation. Vigorously promote the construction of price informatization, and provide strong support for enhancing the ability of price regulation and supervision services. Encourage institutions of higher learning and scientific research institutions to establish price and anti-monopoly research institutions, strengthen international exchanges and cooperation, and train specialized personnel. Integrate anti-monopoly law enforcement subjects and forces, and relatively concentrate law enforcement power.
(twenty-five) the bottom line of people’s livelihood. Firmly establish the bottom line thinking, and always take safeguarding and improving people’s livelihood as the starting point and end result of the work. When carrying out price policies involving people’s livelihood, especially major price reform policies, we should fully consider the social affordability, especially the possible impact of policies on the lives of low-income groups, do a good job in risk assessment, and improve supporting measures. We will implement and improve the linkage mechanism linking social assistance, security standards and price increases, improve the social assistance system, especially the assistance measures for the poor, and ensure that the basic livelihood of the poor people will not be affected. Strengthen price supervision in the field of people’s livelihood, do a good job in mediation of price disputes, and safeguard the legitimate price rights and interests of the people.
(twenty-six) do a good job of public opinion guidance. Intensify publicity and reporting on comprehensively deepening price reform, standardizing government pricing, strengthening market price supervision and anti-monopoly law enforcement, strengthen news release, accurately explain price policies, tell the "price reform story", guide public opinion in time, respond to social concerns, convey good voice and positive energy that are conducive to accelerating the improvement of the price mechanism mainly determined by the market and promoting economic transformation and upgrading, and actively create a good public opinion atmosphere.
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