| Railway transport monopolies and deregulation problem not only exist in China. In the world, past and today, regulatory reform movements are carrying out for the purpose of breaking the railway industry monopoly and promoting the liberalization of competition in the market. In China, following the telecommunication, and electric power industries, the reform of the railway becomes another major focus. Due to the current management system which has no clear line between the parts played by the government and enterprises, the undergoing investment system which has simplistic investors and lacks restrictions of investment risk, and the existing problems such as a strict market access and a rigid control of price, the development of rail road industry hardly fulfills the requirement of the economic and social development, and it even becomes a threshold that barricades economy. Therefore, an institutional reform in railway industry is rather urgent. The rail transport is recognized with the natural monopoly features so that it has been subject to government control both in infrastructure construction and the operational management. With the development of the theory of competition and the influence of deregulation, many countries carry out the railway reform to improve efficiency. Facing a different market environment, a different institutional background, and different technological conditions, it is impossible for China's railway industry to simply copy the reform patterns of telecommunication and civil aviation. Because of the different national conditions, we also can not directly copy the modes of other countries, but we can find common ground in such reforms which are useful to China's railway reform. The legal approach of China's railway reform is mainly reflected in the following aspects: First, to change the government's management system to clear the rights and duties between the government and enterprises. Second, with the establishment of a modern enterprise system, the state-owned railway companies can become true market economic entities. Third, to develop a multiple investment system. Fourth, to reform the market access system and consummate the supervision system of transport fee. Finally, it is also important to establish a railway legislation on the basis of the Railway Act and Anti-monopoly Law to promote China's railway reform. |