Deputies demand laws to halt spread of megastores

Laws are needed to control the reckless development of megastores on the mainland, according to a group of NPC deputies.

The proposal, supported by 100 deputies, calls for a law requiring hearings to approve the opening of any more of the large stores, which have sprouted in most major cities.

NPC deputy Wang Tian, who is also the president of the Hunan Bubugao Supermarket Chain, was quoted in state media as saying the proposal had been sent to Commerce Minister Bo Xilai.

The action comes amid growing concern that the megastores, many of which are foreign-owned, are overshadowing small local stores and encouraging corruption and illegal land use. Desperate for foreign investment, local governments often illegally approve and subsidise the building of the stores.

The mainland is home to 236 megastores which cover a combined 7 million sq metres. Mr Wang said another 20 million sq metres of land would be consumed by megastores under construction.

Both Wal-Mart and Carrefour operate megastores on the mainland, but they were not singled out for criticism.

A Ministry of Commerce official was quoted by China Daily as saying new rules would be issued at the end of this year which would require local governments to submit their commercial development plans for review.

'With the city-level plan for commercial layout, we expect to avoid the overlapping construction of megastores, which leads to a waste of resources and vicious competition,' the official said.

A Wal-Mart spokeswoman declined to comment on the proposed rules.