At a recent public hearing organized by the municipal government of
Yinchuan, the capital of northwest China's
Ningxia Hui Autonomous Region, consumer representatives aired
their divergent opinions on the government's decision to raise the
price of water by 71 percent, a decision which has already been
approved by the regional government department in charge of
pricing.
Ma
Youchang, a 32-year-old representative, said, "Only when the
price-fixing department listen to the opinions of our customers,
can it fix the correct prices reflecting our will."
Over the passing year, the price bureaus of both Yinchuan City and
the Ningxia Hui Autonomous Region, home to the country's largest
Muslim population, organized several public hearings to collect the
opinions of local consumers with regard to increases in the prices
of electricity, taxi fares and water.
Similar hearings have been held in many other Chinese cities, and a
great number of Chinese consider them part of their daily life.
The most significant public hearing was held in Beijing earlier
this year on the price increases for railway fares during the
Spring Festival, the Chinese lunar New Year. The hearing, televised
by China Central Television, attracted widespread national
attention.
Earlier, Qingdao City, in east China's Shandong Province, and
Guangzhou City, in south China's Guangdong Province, also held
hearings to seek the opinions of local residents on the raising of
taxi and train fares.
To
standardize the public hearing system, the
State Development Planning Commission worked out a provisional
measure for government decisions on price adjustments in August,
2001. It stipulates that when the government attempts to raise the
price of water, electricity, coal, telecommunications, railway
tickets or other items essential to the daily life of the Chinese
people, public hearings must be held beforehand. The measure was
amended in November 2002 to include procedures for selecting
consumer representatives.
"This demonstrates that the right of participation of the Chinese
people has received its due consideration. The scope of democratic
decision-making is expanding in China," said Wang Yang,
vice-minister of the State Development Planning Commission.
Public hearings are playing an increasingly important role in price
adjustments by governments at various levels, and the opinions of
consumers are often taken into account in governments'
decisions.
Wang Xinjuan, a 57-year-old consumer, said, "Public hearings have
put an end to special sectors' monopoly and are upholding the
legitimate rights and interests of consumers. This is clearly a
sign of social progress."
Chinese economists consider that arbitrary and disguised price
increases by various sectors are detrimental to fair market
competition, especially after China has entered the WTO. They
stress that, in order to increase profits, companies must reduce
production costs rather than increase prices.
The public hearing system benefits not only consumers and
enterprises, but also governments. It helps to enhance the prestige
and credibility of governments, Wang Yang said.
The public hearing mechanism has not been applied consistently,
however. Hearings on telecom price hikes in Beijing, for example,
aroused public criticism because the procedure and the process were
not open to the public.
(People's Daily January 1, 2003)