Chinese School - Trade: Bribes push up prices

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BIZCHINA / Biz Media Digest

Trade: Bribes push up prices

(China Daily)
Updated: 2007-08-31 09:33

Commercial corruption, which also contributes to the increasing prices of
commodities, should be eliminated, says an article in Qilu Evening News.
The following is an excerpt:

Officials from Carrefour, the world's second biggest retailer, recently
caught staff members in Beijing engaged in what could be commercial
corruption.

The employees were suspected of taking bribes from suppliers.

This incident may take on more significance when placed against the big
picture of the economy.

The prices of most of the commodities on the market have increased since
the beginning of the year. When the authorities try to regulate the
market, they cannot ignore the factors inside businesses that drive
prices up to an unreasonably high level.

In the Carrefour incident, the bribes taken from suppliers will naturally
be passed on to the costs of the commodities, which will be reflected in
the prices of goods at the supermarket. In other words, the customers are
actually paying the bribes.

By eliminating commercial corruption, the authorities can maintain the
market order and promote the public welfare. Therefore, stamping out
commercial corruption should become an important part of the efforts to
rein in price rises.

Besides multinational companies like Carrefour, investigators should also
keep an eye on domestic businesses, which outnumber foreign invested
ones. The punishments handed down to people who engage in commercial
corruption should also be harsher than they currently are.

(For more biz stories, please visit Industry Updates)

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