The Research On The Regulation Of The Introduction Of Competition In The Railway Industry

The traditional theory advocates that the monopoly of the railway industry due to thecharacteristics of natural monopoly attributes and public attributes. Monopoly of therailway industry can make sure that the railway industry be able to achieve economies ofscale. Meanwhile the drawbacks of monopoly become more apparent, and even leadto the financialdifficulties of the railwayindustry. To getridof financialdifficulties caused by the monopoly of the operation, we need to consider the introduction of competition in therailway industry and Deregulation. The major Western developed countries distinctbetween road network and transport operations in the railway industry and reform theoperation model in resolving the financial difficulties of the railway industry, andgradually relax the regulation of competitive business. China’s railway industry in the pastfewyears havealso tried internalreformseveraltimes,but none of the previousreform touchesZhengqigeyi regulatory management system. It results that we can not introduce effectivecompetition in the railway industry. Under the existing regulation management system, theconfusion of the regulatory agencies and the role of the main market operators leadingto the strict control of executive powers to the railroad industry. It has seriously hamperedthe introduction of competition process of China’s railway industry. We need to reform theexisting regulatory system to build an independent regulatory agencies, improve theregulatory system to provide a sound system to protect the introduction of competition inthe railway industry.