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Comment on "Stabilizing consumer prices a top priority: Wen" (China Daily, July 6)

Some countries control the prices of selected food products. But this is not an international practice, especially because prices should be determined by the demand and supply mechanism, according to the free market theory.

If the authorities want to control the prices of important food products, they could do so by increasing their production or reducing the tax imposed on them.

But the high cost of logistics, thanks to rising gas prices, also plays a role in raising commodity prices. Thus it's important for the Chinese government to develop the renewable energy sector to reduce oil imports and minimize its impact on goods sold in the domestic market.

Fred, on China Daily website

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(China Daily 07/11/2011 page9)