Government Regulation On Privatization Of Public Utilities In China

Public utility plays an important role in the process of social development. Under tratitional regulation, pulic utility in china gradually lost its vigor. It couldn't respond to public requests for high-qualitied goods and services and became a burden of government finance. The reform of it is inevitable and has already begun along with the fast advance of economic and political system innovation in China.Since 1970s, privatization has become an effective tool in the reform of western public utility. In China, the public utility is now opening to the non-state capital and the local governments have promulgated a series of rules and policies to encourage and guide private investment. Privatization in china is in the ascendant.Under the promotion of government and investors inside and ouside the state, after a period of pratice, privatization of public utility in China has made some achievements. While along with this process, more and more problems appeared and gradually became the obstacles of the reform. In this situation, governments' active and rational regulation is necessary and urgent.The essay tries to combine theory with pratice and summarize the experience of present reform in China in these two aspects. By thoroughly analyzing the problems and difficulities of the reform, the essay puts forward the correponding measures and actions for further reform.This essay consistes of for chapters. The first chaper defines the basic concepts of public utility and government regulation to support following discussions. The second chapter dissertates the privatization of public utility in China, including its background, main forms and present achievements. The third chapter reveals the necessity of government regulation on privatization of public utility in china, from the theoretical and practical points of view. By analyzing the successful experience of a privatization in water field in Sichuan province, the last chapter proposes to establish the government regulation based on incentive means in accordance with the present requirements of privatization, so as to attract more fine non-state investors, build a healthy and favorable environment and finally realize public benefits.