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Research on Barriers and Competition Policy of China’s Private Enterprises’ Entry into Natural Monopolistic Industries

Author: ChenDingYe
Tutor: WeiLong
School: Wuhan University of Technology
Course: International Trade
Keywords: The private sector Natural monopoly Deregulation Effective competition
CLC: F276.5
Type: Master's thesis
Year: 2008
Downloads: 242
Quote: 2
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Abstract

Since the reform and opening up, China's economic reform and continue to advance to a market economy, competition has been fully introduced to the various fields of the national economy. After joining the WTO, China's private economy is facing enormous opportunities for development. Private competition increased their strength. However, the private sector to enter the field of natural monopoly is facing internal and external constraints. Further study of the status quo of the private sector into the natural monopoly industries, path and to adapt to the market economy system to relax on the natural monopoly industry regulation, healthy and rapid development of private enterprises in China as well as the improvement of the socialist market economic system has important practical and theoretical reference value. . In this paper, a comparative analysis, first defined the concept of natural monopoly, Review of existing natural monopoly literature based on the current situation of the domestic private sector to enter the field of natural monopoly and analysis problems, and learn from the United Kingdom, Japan learn from the failure of the successful experience of other countries and the California electricity reform, an effective solution to the field of domestic natural monopoly barriers to entry, to promote the further development of the private sector policies to adjust direction. The paper argues that the scale of our private sector is expanding rapidly enhance inner qualities, operational space is rapidly expanding, despite still facing constraints of its own power needs to be strengthened, but the existence of the internal demand into the natural monopoly industries. Of the private sector to enter the field of natural monopoly faces including the urgent need to improve the management and labor relations, and too dependent on the plight of the external environment of the market and government administrative monopolies, regulated improper and institutional barriers to the lack of effective government support. Natural monopoly industries in China difficulty lies in the introduction of effective competition: (1) inadequate preparation reform theory; (2) the interests of stakeholders in the conflict must be resolved; (3) different industries fully competitive conditions are not the same. In this paper, the actual situation of our country, and in accordance with the principles for the establishment of competition rules at home and abroad, proposed policy to adjust the direction of Our Natural Monopoly Industries: (1) to distinguish between natural monopoly business and unnatural-monopoly business, the implementation of the different nature of the business distinction control policy; (2) relax the monopoly industries into the regulation, focus on the gradual elimination of administrative monopoly, the gradual elimination of the bureaucracy of the government departments to make the necessary administrative approval transparent, fair to all enterprises; (3) deregulation treated fair and impartial atmosphere; (4) against monopolistic behavior, but is not opposed the monopoly structure formed due to the competition; (5) the establishment of an independent regulatory body, to make the necessary regulation does not interest groups will tilt.

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