Question

Briefly explain the dual pricing policy adopted by China.

Hint:

The dual pricing policy was particularly significant during China's transition to a more market-oriented economy, facilitating both domestic stability and global trade growth.

Answer 1

The dual pricing policy adopted by China refers to the system where the government sets two different prices for the same goods or services: one price for the domestic market and another price for the international market. This system was used mainly for agricultural products and key industrial goods. Under this policy, the government would often set a lower price for goods consumed within China, aiming to maintain affordability for the population, and a higher price for exports, to earn more revenue from international trade. The dual pricing system played a role in China's economic reform and development, helping to balance domestic needs with global market demands.