Just how scared Beijing is becoming over inflation

FT story on the big fine the Chinese gov levied on consumer products company Unilever for publicly announcing that it planned to lift prices.  Apparently some consumers rushed into stores and bought up stuff in anticipation of the price hike, spooking the authorities.  So they slapped a $300,000 fine on the company.

FT:  "The move by the National Development and Reform Commission, China's economic planning agency, will heighten concern among foreign and domestic companies that they may not be able to pass rising costs on to consumers."

Nervous in government service.

Comments

[Javaid Akhtar]

I just heard that Footwear manufacturers ,that had moved inland to follow lower wages earlier , are now closing up shop in China.
Portugal and India becoming more important therefore.India being held back by poor infrastucture though.

[Michael Griffin]

@Javaid: Didn't Portugal just get a big bailout from China? Why do I get the feeling this isn't coincidence?