ASSESSMENTS

China's Wrangling Over Price Controls

Apr 5, 2011 | 13:11 GMT

FREDERIC J. BROWN/AFP/Getty Images

Summary

Concerned about the rising prices of consumer goods in China, the country's top economic planning body has reportedly asked the Anglo-Dutch company Unilever to suspend price increases. The move reveals two things: that inflation is spreading and the state is becoming more active in intervening to prevent an upward spiral — to the point of leaning heavily on foreign companies. Meanwhile, the domestic battle continues as a number of local governments, banks and state-owned enterprises resist Beijing's measures.

Beijing's hardening stance against inflation is affecting foreign companies in new ways....

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