China's Natural Monopoly Industry Regulation And Reform

Since the 1980s, western countries relax the control of the natural monopoly industries. The reforms of the government control of the natural monopoly gradually become an international trend. Its orientation is to relax the control. The government should import the competition as much as possible in the field of competition. At the same time, China's government control of natural monopoly is also changed from the state monopoly of the planned economy period to modern government management under the market economy conditions. Although the reform has achieved initial results, there are serious failures of government controlOverall, the foreign and domestic research results mostly starts from the point of view of the economics, the industrial economics ,to study manufacturers, industrial organizations ,industrial structure , micro-level of regulation, control methods of technology and improvement. Based on the empirical analysis of electricity reform, the article in-depth studies in the government control issue of natural monopoly industries of China with the background of the government control, using empirical method and comparison in theory and practice of two levels.The government control of natural monopoly industries of China, due to the formation of the internal logic, a variety of intertwined interests, show a specificity and complexity .the article showed that the national economy-state and government departments as the main interests to participate in the economic activities drives benefit distribution and lead to administrative monopoly, industrial monopolies and government and enterprise linked, through the three-dimensional analysis of the process of the government control of its own triple role of conflict and dislocation, the commission- chain of agents fracture .The enterprise alliance with the government and the government monopoly control is superficial .behind the complex and intertwined idea, the fundamental reason of failure for the government control of natural monopoly industries is the loss of the modern system of government regulation. The loss of the system of government regulation contains lack of system of property rights, the missing of the law and legal system. Especially, the insufficient supply and deficiencies of law and property rights lead to the government regulation and control relying on a path to failure. It also makes a top-down administrative reform of government control of Chinese natural monopoly industrials become a bottom-up enterprise technical reform. The reason for the dislocation and absence of government control is the loss of the law and the interests confusion that the unclear boundaries of property causes.The direction of government control of China's natural monopoly industries should be changed from the sector management in the planned economy to the modern government management, beyond the"national economy",into the modern system of government.