Two government agencies, including the General Office of the National Development and Reform Commission ("NDRC"), have recently distributed the Circular on Matters Concerning Repealing the Rule of Having Transaction Services for China's Sugar and Meat Reserves Priced by the Government (the "Circular").
The Circular explicitly states that the government pricing policy, applicable to prices of transaction services for the country's sugar and meat reserves, is abolished immediately from the date this Circular is released. Meanwhile, the Circular of the National Development and Reform Commission and the Ministry of Finance on Reducing the Prices of Transaction Services for China's Sugar and Meat Reserves is repealed simultaneously. In addition, the Circular notes that after transaction services for sugar and meat reserved by the country have been priced under the market regulation, related entities shall do business in a legal way and provide quality services with reasonable prices, in compliance with the Pricing Law and applicable laws and regulations; the related competent authority of the industry shall strengthen its supervision over the prices charged by market players in the industry, in order to create an open and fair market environment and direct the industry to healthy development.