China cracks down on price gouging amid food shortages

theguardian.com:

Chinese authorities have said they are cracking down on price gouging as food shortages due to Shanghai’s lockdown continue and fears in Beijing prompt a run on supermarkets.

It comes as social media platforms shut down the account of a high-profile critic of the government’s insistence on a traditional Chinese medicine product being rolled out to millions of residents.

On Wednesday the Ministry of Public Security pledged any individuals taking advantage of outbreaks to make a profit would be dealt with strictly, with fines of up to 3m yuan (£363,400).

In Shanghai one man faced administrative punishment for “fabricating and disseminating price increase information and disrupting market price orders”. The man was accused of buying produce and reselling it online at prices increased by up to 360%. Another was accused of renting someone else’s business licence and selling produce and food online at inflated prices, making $230,000 (£180,000) in profit. Last month Shanghai’s market supervision authorities said they had already issued about 20,000 warning letters over price gouging.

In Beijing residents have reported steep price rises in shops. Fears that the capital could head into lockdown prompted widespread stocking up, leading to shortages in some supermarkets, even in areas not yet designated medium or high risk.

“People are in an area without the epidemic, and they came back to the vegetable market today. The price of eggs has gone up, and the price of meat has gone up, and the potatoes are still there, but their value has doubled,” said one resident on Weibo. “I didn’t panic, but this is urging me to panic.”

Authorities have ordered mass testing of more than 20 million people across Beijing and suspended all weddings,