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China

Price: $ 22

China has done much to reform its price system, achieve macroeconomic stability, and restore growth. Nevertheless, price distortions remain in three key areas.
This study suggests further price reforms for the energy, grain, and transport sectors. It explains why energy price adjustments should have only a modest effect on consumer prices, but a highly positive effect on the economy.
It discusses why China may have to reduce consumer subsidies to achieve the necessary reforms for grain prices. The study describes what the government must do to strengthen commodity markets, generate competition, and make allowances for seasonal price variations.
China's transport sector has been a critical development bottleneck. The paper reviews tariff adjustments and other reforms that would modernize the transport system and help it meet growing demand. These reforms also would encourage energy conservation and help integrate the national economy.

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