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http://online.wsj.com/article/SB1000...272168750.html
Showing a willingness to control rising prices with aggressive tactics, Chinese authorities on Friday fined consumer-goods maker Unilever PLC for talking publicly about planned price hikes, which the government said contributed to a scramble for products like soap and detergent in the inflation-hit country.
The National Development and Reform Commission, China's economic planning agency, fined Unilever two million yuan ($308,000), saying the Anglo-Dutch company had broken the law when it spread information about impending price increases and disrupted market order.
China's government is battling mounting inflation problems that run the risk of destabilizing the country. Inflation hit a 32-month high in March. China's consumer-price index jumped to 5.4% from a year earlier, the fastest rise since July 2008, as soaring commodity costs have driven food and consumer-goods companies to raise prices.
The fine issued to Unilever comes as Chinese consumers have grown fearful of the increasing costs of their food and other daily necessities. To soothe their woes, China's leaders, who believe state power is a critical component to maintaining economic growth and stability, have stepped in. But the Chinese government has limited tools to curb inflation in part because of its exchange-rate regime.
The Chinese government's heavy hand, while intended to maintain social calm, poses risks for companies operating in China, such as Unilever. Surging commodity costs are not only affecting the pocket books of consumers, but also many businesses' profit margins.
Unilever appears to be the only company that has been fined. A noodle maker, Tingyi Holding Corp., was given a warning over discussing price increases publicly, but no fine was issued.
???
http://online.wsj.com/article/SB1000...272168750.html
Showing a willingness to control rising prices with aggressive tactics, Chinese authorities on Friday fined consumer-goods maker Unilever PLC for talking publicly about planned price hikes, which the government said contributed to a scramble for products like soap and detergent in the inflation-hit country.
The National Development and Reform Commission, China's economic planning agency, fined Unilever two million yuan ($308,000), saying the Anglo-Dutch company had broken the law when it spread information about impending price increases and disrupted market order.
China's government is battling mounting inflation problems that run the risk of destabilizing the country. Inflation hit a 32-month high in March. China's consumer-price index jumped to 5.4% from a year earlier, the fastest rise since July 2008, as soaring commodity costs have driven food and consumer-goods companies to raise prices.
The fine issued to Unilever comes as Chinese consumers have grown fearful of the increasing costs of their food and other daily necessities. To soothe their woes, China's leaders, who believe state power is a critical component to maintaining economic growth and stability, have stepped in. But the Chinese government has limited tools to curb inflation in part because of its exchange-rate regime.
The Chinese government's heavy hand, while intended to maintain social calm, poses risks for companies operating in China, such as Unilever. Surging commodity costs are not only affecting the pocket books of consumers, but also many businesses' profit margins.
Unilever appears to be the only company that has been fined. A noodle maker, Tingyi Holding Corp., was given a warning over discussing price increases publicly, but no fine was issued.
???
http://online.wsj.com/article/SB1000...272168750.html
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