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New rules to curb panic buying

Updated: 2012-01-31 21:37

(Xinhua)

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BEIJING - A new regulation on the emergency management of the market supply of daily necessities will take effect on February 1, stipulating punishments for commerce administration departments that cover up abnormal fluctuations in local markets.

According to the regulation released by the Ministry of Commerce, "abnormal fluctuations" refer to steep price changes, as well as items that run out of stock or can not be sold as a result of natural disasters, public health issues, social security incidents or other major events.

"Local commerce administrations above the county level should take measures to publicize market information and properly guide market expectations if daily necessities are out of supply or their prices soar," according to the regulation.

The regulation came after cadmium entered a river in South China's Guangxi Zhuang Autonomous Region, killing many fish and prompting panic buying of bottled water over the past week.

According to the rules, local administrations are also responsible for urging relevant enterprises to arrange supplies, mobilizing storage facilities in other regions to ensure local market supplies, requiring the commerce ministry to arrange imports, or organizing rations, if necessary.

Local administrations that fail or delay to report such market abnormalities will be warned and reprimanded, and officials responsible for such violations will be demoted or stripped of their posts, according to the regulation.

Moreover, another document on the implementation of the country's Bidding Law will also take effect from February 1, and it aims to prevent those to whom a tender is made from conspiring with bidders under the table, as well as other forms of malpractice.

The document offers additional, detailed stipulations to ban filtering bidders in accordance with unreasonable requirements and illegal censorship procedures.

According to the document, tender recipients should not list specific achievements or awards as bidding terms or set down certain brands or providers as bidders.

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