The National Development and Reform Commission ("NDRC") has recently issued the Measures on Government Pricing Hearings (the "Measures"), with effect from January 10, 2019.
The Measures introduce revisions as below. First, the scope eligible for hearings is expanded to cover pricing mechanisms for pricing hearing items. Second, the forms of hearings are made more diverse and online hearings are encouraged on a pilot basis. Third, the constitution of subjects for hearings is optimized to cover functionaries of pricing bodies and individuals with specialized expertise as subjects for hearings. Fourth, the ways in which hearing participants are selected are further regulated, and a new requirement concerning the withdrawal of interested hearing participants is introduced. Fifth, hearing procedures are further improved. Sixth, price hearings are made more open and transparent, with a heavier emphasis on the public disclosure of costs throughout the hearing process, the openness of details about hearings and the release of information regarding hearing participants. Seventh, supervisory constraints are enhanced via a tighter pricing hearing catalog and through encouraging third-party agencies, individuals with specialized expertise, observers and other third parties to participate in the hearings, and legal liabilities of different hearing participants are clearly defined.