China’s Price Management

In recent years, China's financial market has been in shambles. Industry insiders say the relevant departments offer lip service without delivering实质行动. This is fundamentally tied to overall governance strategy. While it's true that money printing has increased, authorities work hard to control where that money flows—specifically preventing it from entering essential goods. Once it does enter essentials, prices would rise across the board, plunging ordinary people into hardship. That's why the past strategy has been to redirect capital toward other assets to inflate their prices (such as real estate).

Price management of essential goods is the foundation of social stability. Domestic governance operates on the principle that any price increase must be approved by the relevant authorities. If a company is too aggressive—or operates in a relatively important industry—the government will intervene directly by creating or backing a competitor to enter the market and help regulate prices. For example, against Jiangnan You (金龙鱼), the state launched COFCO (with brands like Fulinmen) to serve as a price-control mechanism. Thus, such companies face a profit ceiling.

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