Research On Barriers And Competition Policy Of China's Private Enterprises' Entry Into Natural Monopolistic Industries

Since reform and opening up, China's economy remains reformed toward market economy. The Competition has been introduced into almost all fields of national industries. With China's entry into WTO, China's private economy is facing great opportunities for development. The competitiveness of private enterprises has been strengthened a lot. However, private enterprises' entry into the fields of natural monopoly is facing the limitations of their own strengths and inherent barriers. In order to promote the further development of private enterprises in China and China's relaxation of the control over the natural monopoly, it has important practical meaning and theoretical reference to investigate on the barriers that private enterprises will encounter when they enter into China's monopolistic sectors and put forward the direction of a positive and effective competition policy adjustment.This thesis adopts a comparative analysis to expatiate relevant concepts, citing lots of literatures on natural monopoly, describing the current situation and existing problems domestic private enterprises face for now when entering into the field of natural monopoly. It also puts forward an effective solution to eliminate the entrance barriers of domestic monopoly field and the policy adjustment direction of promoting the further development of private enterprises, which is learned from the successful experience of foreign countries.This thesis asserts that the scale of China's private enterprises is growing, inner personality is promoting and the running room is increasing. They want to enter into monopolistic industry, though facing certain limitations. The barriers that private enterprises are facing when entering into natural monopolistic industries including management and labor issues to be sloved, over relying on outside environment, administrative monopoly, ineffective regulation and shortage of government's effective support. This thesis asserts that the difficulties are faced by China's natural monopolistic industry when introducing into effective competition are as following: (1) there aren't enough theories available for the reform; (2) the conflicts between stakeholders' interest are to be solved urgently; (3) the conditions are different for full competition in different industries.Therefore, the advices for the direction of policy adjustments are as following: (1) to distinguish between natural monopolistic business and non-natural monopolistic business and treat them differently; (2) while releasing the entry regulation of monopoly industry, we should focus on the elimination of administrative monopoly and government's bureaucracy and make the administrative examine and approve transparent; (3) when releasing regulation, treat all the enterprises equally and establish an atmosphere of fair and justice; (4) opposing monopolistic action, but do not oppose the monopolistic structure caused by competition;(5)establish independent regulation organization so as to avoid unfair treatment caused by interest groups.