In order to further deepen price reform and improve the price governance mechanism, the General Office of the CPC Central Committee and the General Office of the State Council recently issued the "Opinions on Improving the Price Governance Mechanism". Among them, on how to improve the market price formation mechanism, the "Opinions" put forward three key measures, including deepening price market-oriented reform, accelerating market construction in key areas, and creating a competitive and orderly market environment.

The "Opinions" propose that the goal of improving the market price formation mechanism is to build a market environment with complete systems, fair and openness, and orderly competition, promote the effective formation of prices, optimize resource allocation, stimulate market vitality, enhance the endogenous driving force of economic development, and improve the market price formation mechanism, not only to let prices be formed by the market, but also to have a trading market to undertake it, and cultivate diversified competitive entities.

In deepening the market-oriented reform of prices, the "Opinions" proposes to steadily and orderly promote market-oriented reforms in key areas such as energy resources and transportation, so that more prices are formed by the market.

In accelerating the construction of markets in key areas, the "Opinions" proposes to promote the construction of spot and futures markets, optimize the rules for listing, trading, supervision of futures varieties, and lay a solid foundation for market formation.

In creating a competitive and orderly market environment, the "Opinions" proposes to abolish price policies that hinder the construction of a unified national market and fair competition, and prevent the government from interfering in prices; effectively regulate the business scope of natural monopoly enterprises, prevent the use of monopoly advantages to extend to upstream and downstream competitive links, and create a market environment conducive to the effective formation of prices.

Improve the public service price policy and respond to people's livelihood concerns

Price signals are an important way to guide resource allocation. Experts said that the "Opinions on Improving the Price Governance Mechanism" focuses on five key areas to play a price guiding role, strives to serve the implementation of major national strategies, and responds to people's livelihood concerns.

The "Opinions" point out that agricultural price policies should be improved. Improve the income guarantee mechanism for grain-growing farmers that coordinates prices, subsidies, insurance and other policies, improve the minimum purchase price of rice, wheat and subsidies for corn and soybean producers, stabilize the supply of policy-based pig insurance, encourage local governments to explore and carry out vegetable and other varieties insurance according to local conditions, and promote the stable and safe supply of grain and important agricultural products.

The "Opinions" point out that energy price policies should be improved. Establish and improve the price mechanism for regulated resources such as natural gas power generation and energy storage, improve the nearby transaction price policy for new energy and the ladder price system for key industrial areas, improve the national unified green power certificate trading system, build international green energy standards and certification mechanisms, and promote the green and low-carbon transformation of energy.

In improving the utility price mechanism. The "Opinions" propose to clarify the boundaries between government investment and user payment, improve the public utilities price mechanism; promote progressive increase in non-resident water use exceeding the fixed quota, garbage disposal metering charges, optimize sewage treatment fee policies, and promote the sustainable development of public utilities.

In improving public service price policies. The "Opinions" propose to improve the basic service fee policy for privately run universal elderly care and childcare institutions, strengthen the fee management of universal kindergartens, promote balanced access to public services, ensure the basic needs of the people, and better meet diversified needs.

At the same time, the "Opinions" also propose specific measures to innovate public data price policies. It is necessary to establish and improve data market rules that meet the needs of the development of the digital economy, accelerate the formulation of price policies that meet the characteristics of public data elements, and promote the safe and efficient development and utilization of public data.

Deputy Director of the Institute of Economics of China Institute of Macroeconomics Guo Liyan: For example, to improve reforms in the fields of public utilities and public services, we must take into account the tolerance of residents' families, and continuously improve the price mechanism related to public utilities, improve and perfect the price formation mechanism, which means responding to people's livelihood concerns, promoting the healthy and sustainable development of related industries, and improving the quality and level of relevant public utilities supply, so as to better meet the needs of residents' families for a better life.