China is strengthening the nonprofit nature of its funeral services by introducing new price display rules, targeting an industry where bereaved families have long faced unpredictable expenses.

The regulation, which was jointly issued by the State Administration for Market Regulation and the Ministry of Civil Affairs, will take effect on May 31.

Providers must now display prices fully and transparently, publish complaint hotline numbers, and refrain from using pricing tactics to commit price fraud, alongside other prohibited practices, according to the regulation. It also encourages the use of standard contracts and online price disclosure.

The regulation applies to all funeral industry operators — including funeral homes, cemeteries, intermediaries and vendors of funeral items — covering the entire process from burial to memorial services.

The move followed a wave of nationwide reforms over the past year that have significantly lowered funeral costs for low-income families.

A key part of the reforms is a sweeping revision of national funeral management regulations by the State Council, China's Cabinet, which took effect on Monday.

The updated rules — the first major overhaul since 2012 — aim to reinforce the public service nature of burial services and encourage environmentally friendly practices.

According to a report from Qianzhan Industrial Research Institute, a Beijing-based consultancy firm specializing in market data research on niche industries, the average cost of a funeral in China was around 26,000 yuan ($3,770) in 2020. The 2020 figure already approached that year's national median per capita disposable income of 27,540 yuan, highlighting the significant financial burden of end-of-life expenses.

Nevertheless, the situation is gradually evolving. At a funeral home in Jixi, Heilongjiang province, a solid-wood casket now sells for 110 yuan, after multiple rounds of price cuts. There are more than 20 casket models priced below 1,000 yuan, with the cheapest costing just 80 yuan.

"My mother received a dignified farewell, and it cost only 200 yuan in total," said a State benefit recipient surnamed Li, after completing the funeral formalities for her mother.

The staff automatically applied a fee waiver covering basic services such as transporting the body, storing it, cremating it, and storing the ashes. Li only paid for a few optional items.

According to Zhang Lei, director of the Jixi Civil Affairs Bureau, since November 2024, the city has abolished 72 "unreasonable" service items and reduced fees for 248 others. The city has also extended basic-service subsidies to most low-income rural residents, reducing costs by 27.8 million yuan for 43,800 people.

Similar efforts are gaining traction nationwide. As required by the revised funeral management regulation, all provinces now use a two-list system separating essential funeral services from optional ones. Basic services, including corpse transportation, storage, cremation and eco-burials, are priced at cost, while nonessential services are kept within reasonable limits.

According to the Ministry of Civil Affairs, on average, each province has 12 service items subject to government pricing or guidance, accounting for more than 40 percent of total services.

Nationwide, the average cost of funerals at crematoriums has fallen by 33 percent, while casket prices have dropped by 38 percent. The average price of cemetery plots at commercial cemeteries has fallen by 20 percent.

More than 2,600 counties now offer subsidies or fee waivers for basic funeral services, covering all residents.

Administrative procedures have also been simplified: 88 percent of post-death paperwork can now be completed via a single online application, reducing processing times from 80 days to an instant digital process.

lilei@chinadaily.com.cn