Business Notes: China Peking's Prices Take Off

China Peking's Prices Take Off

For the past five years, Chinese Leader Deng Xiaoping has instituted sweeping economic reforms, moving away from rigid state controls and closer to the free-market system. Capitalism advanced a step further last week when the government announced that price controls in Peking would be lifted on more than 1,800 food items, effectively raising their costs by some 50%. The price reforms had already been introduced in 22 other cities and autonomous regions.

Peking's 5.5 million residents will receive a subsidy of 7.5 yuan a month (l5% of per capita income) for a year to help pay the higher prices, but that...

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