The adjustment of production factor prices in a broad sense is an important component of China’s economic system reform.
The Chinese government has emphasized the need and made continued efforts to adjust the structure of income distribution, including raising the share of household income, promoting price reform of energy products such as petroleum, gas, water and electricity to have in place a more reasonable price system for basic products, raising pollution charge and fee standards for sewage and garbage treatment to deepen the reform of environment protection charges.