China lifts price controls on 24 commodities, services

China will lift controls on prices of 24 commodities and services, said the National Development and Reform Commission on Sunday.

Market will decide the price of tobacco leaves, the last agricultural product to be freed from government price control, but a minimum price will be set to protect farmers, said a statement on the commission website.

Prices of railway bulk cargo, parcels and privately funded cargo and passenger transport will also be allowed to float. Railway passenger and cargo prices have been decided by the government, but lag far behind changes of road and water transportation prices, which has impeded the development of the railway sector, said Sun Zhang, a professor with Tongji University.

Prices of domestic air cargo will be freed, as well as prices of passenger transport of some airlines.

Wu Tongshui, deputy director of China Air Transport Association, said the move will help activate the market, attract more private investment and enhance the competitive edges of carriers.

Limits will be removed on port service fees, including fees on container loading, ship rubbish treatment and water supply.

Limits will be removed on factory prices of explosives for civil use.

Source: http://www.globalpost.com/dispatch/news/xinhua-news-agency/150104/china-lifts-price-controls-24-commodities-services