Regulatory Reform Of Natural Monopoly Industries In China

At current, china is on the crucial time of economy in transition, and in accordance with it, the regulation reform of the natural monopoly industry, as an important subject, comes to the agenda. Therefore, to speed up the regulation reform of the natural industry is not only the important theme to perfect the socialism market economy, and also it is the objective request to subject to the economic globalization after china's joining WTO .Firstly, on the analysis of the traditional regulation theory of natural monopoly, this paper explores the theory basis of the regulation reform from the development history of the natural monopoly and government regulation. Secondly, this paper analyzes the development of the regulation reform of natural monopoly industry in advanced country; and from the law system, regulation institution& method, competition mechanism and property system, sums up the experience of the regulation reform which provides a precious mirror for our regulation reform. Thirdly, from the view of various defects of regulation system and regulation operation in our natural monopoly industry, this paper comes up with the inner request to further regulate the natural monopoly industry; and from the view of a new stage of opening to foreign nation, reforming mechanism and developing economy, brings forth the outer request to further regulate the natural monopoly industry; thus, the regulation reform of our natural monopoly industry is necessary and inevitable. Partly on the reflection of the successful experience of foreign regulation reform, partly, and more importantly, in consideration of economic facts of china reform, this paper brings up some ideas that the deregulation and re-regulation should be in unison. The deregulation means to loose gradually the rigid regulation under former planned economy, which involves such reform problems as the entry& exit mechanism, price control mechanism, and investing& financing mechanism. The re-regulation is that, in fact, when a government deregulates, it should strengthen the regulation system. To deregulate in a re-regulation way is a systematic guarantee for loosing the regulation and competing itself. The re-regulation involves two different subjects: one is to re-regulate the institution itself; another one is to perfect the contents system, but to achieve this point, four aspects should be included: (1) incentive regulation under conditions of remnant natural monopoly. (2) Regulation on the intersection between natural monopoly and competition and under the transition from natural monopoly to competition: Asymmetric regulation (3) perfection of the Anti-monopoly regulation after fulfilling the adequate competition (4) Social regulation in addition to the economic regulation. However, in that the natural monopoly industry plays a vital role in a national economy, we should also take some assistant reform measures.