Competitive businesses in electric power, telecommunications, petroleum and other fields will be liberalized
(Source: "Beijing News" 2019-12-23 Reporter:Sha Xueliang Jiang Huizi）
Yesterday, the full text of the "Opinions on Creating a Better Development Environment to Support the Reform and Development of Private Enterprises" by the Central Committee of the Communist Party of China and the State Council was released, which proposed to optimize the market environment for fair competition, comprehensively investigate and systematically clean up various explicit and implicit barriers, Liberalize competitive businesses in key industries and fields such as electricity, telecommunications, railways, oil, and natural gas; policy implementation must be pragmatic and not "one size fits all"; resolutely resist and promptly refute and clarify erroneous remarks that question the basic socialist economic system and deny the private economy.
The full text of the "Opinions" has more than 5,000 words and 28 articles. It puts forward requirements for creating a better development environment to support the reform and development of private enterprises from eight aspects: overall requirements, optimizing the market environment for fair competition, improving accurate and effective policy environment, improving the legal environment for equal protection, encouraging and guiding the reform and innovation of private enterprises, promoting the standardized and healthy development of private enterprises, building pro-Qing government-business relations, and organizational guarantees.
The "Opinions" put forward the overall principles for supporting the reform and development of private enterprises, that is, adhering to fair competition, treating all types of market entities equally, creating a market environment, policy environment, and legal environment for fair competition, ensuring equal rights, equal opportunities, and equal rules; following market laws, properly handling the relationship between the government and the market, strengthening the basic position of competition policy, focusing on the use of market-oriented means, achieving the survival of the fittest of enterprises and optimal allocation of resources through market competition, and promoting market order and regulation.
Interpretation 4
Government intervention should be avoided when formulating policies
Huang Yong, Director of the Competition Law Center of the w88 casino
The "Opinions" propose that we should follow the laws of the market, properly handle the relationship between the government and the market, strengthen the basic position of competition policy, focus on the use of market-oriented means, achieve the survival of the fittest among enterprises and optimize the allocation of resources through market competition, and promote the standardization of market order.
In this regard, Huang Yong, a member of the Expert Advisory Group of the State Council Anti-Monopoly Commission and director of the Competition Law Center of the w88 casino, believes that this document is the first important document to emphasize competition policy since the Decision of the Fourth Plenary Session of the 19th CPC Central Committee proposed "strengthening the basic status of competition policy."
“Competition policy refers to market-oriented laws, market-oriented rules, and market-oriented rule of law.” Huang Yong said that the implementation mechanism of competition policy proposed in this document is a concentrated expression of the modernization of the governance capabilities of the national governance system in deepening the reform of the economic system. The fair competition review system, regulations to optimize the business environment, and the system of equal treatment of all market entities need to be implemented under the guidance of competition policies and principles. For example, the rigid constraints of the fair competition review system are both a new formulation and an urgent need to avoid administrative monopoly at the source. The timely release of documents at the central level has pointed out the direction for the market and the government in a timely manner. That is, the formulation, implementation, modification and improvement of all economic policies must be consistent with the principles and concepts of competition policy, as well as the fair competition review system and the mandatory provisions of the anti-monopoly law.
Huang Yong believes that the implementation mechanism of competition policy has been continuously improved and has taken a step towards top-level design. After the Anti-Monopoly Law implemented in 2008 legalized the concept of competition policy, society's expectation is that competition policy will be further incorporated into the party's most important programmatic documents, clarifying the coordination relationship between competition policy and industry, finance, w88, investment, consumption, employment, regional and other policies, and then forming more mechanisms to implement competition policy. The "Decision" of the Fourth Plenary Session of the 19th CPC Central Committee and this document's emphasis on competition policy provide a basis for coordination between competition policy and other economic policies.
“The Opinions should be more fully implemented and effective.” Huang Yong pointed out that this document involves all aspects of the access, operation, and development of private enterprises. Therefore, first of all, the government must conduct a comprehensive and in-depth assessment of the market and understand the market, and avoid the inertial thinking of government intervention when formulating policies; and then implement it in detail. In the process of implementation, we still need to deeply understand what the General Secretary emphasized in his speech at the private enterprise symposium last year, and it is also required by this document to promote the transformation of industrial policies from differentiation and selectivity to inclusiveness and functionality, let competition policy occupy a more prominent position, and better leverage the institutional advantages of the socialist market economy and the innovative advantages of my country's vast number of private enterprises.
“Competition policies and fair competition review systems must be implemented into specific decisions and behaviors, which require professional evaluation and discussion. When making financial investments, it is most important to ask professionals and National People’s Congress representatives to evaluate and demonstrate each transaction. This is the most important thing,” Huang Yong said.
Original link:http://epaper.bjnews.com.cn/html/2019-12/23/content_774816.htm?div=-1
