Public Enterprise A Competitive Mechanism Legal Issues

Public enterprises are profit-making enterprise legal person with social welfare, and some natural monopoly. Since the establishment of China, public enterprises have been implemented with administrative monopoly of monopoly adapting to the planned economic system. Administrative monopoly is the essence characteristics of Chinese public enterprise monopoly. After the reform and opening up policy, both economic system and political reform did not mention the issue of Public Enterprises Reform. Currently, Chinese public enterprises are faced with a profounding regulatory reform. The Strength of the Public Enterprises' Legal Regulation is not only respond to needs of the challenges of science and technology advancement and that of implementation of WTO commitments, but also learn from the developed countries' experiences of public enterprise reform so as to promote the requirements of Chinese regulatory reform of public enterprise. This article start with the problems of basic theories in public enterprise and then analyse the reasons for the formation of public enterprise monopoly, putting up with the necessary of bringing in the competition of the public enterprise in China. Meanwhile, this article analyse the problems in Chinese current regulatory law system and learn the experience and practice of public enterprise regulatory reform from developed countries, coming up with the presumption of legal regulation to improve the mechanism of competition of Chinese public enterprise, including the improvement of legal system and the specific law of public enterprise in China. Finally , this article suggest specific measures , such as improving the public utility regulatory law, opening up market access, introducing the competition system, standardizing the market behavior of public enterprises, regularing the competition order, enforcing anti-monopoly law enforcement as well as legal supervision, that the establishment of competitive mechanism of Chinese public enterprise can be ruled in the law system.