A Brief Analysis On China’s Approach Of Application Of The Principle Of Competitive Neutrality

Competitive neutrality principle was first proposed by Australia in1990s.Withthe development of economic globalization, the competition has exceeded the scopeof domestic law, extended to the field of international law. The principle has causedthe attention of OECD and an in-depth study of OECD. The proposed principlesaimed at creating a fair competitive environment for state-owned enterprises andprivate enterprises, reduce inefficiencies of the market economy. Competitiveneutrality principle is not limited in the scope of state-owned enterprises, in a deeperlevel, this principle is applicable for anti-competitive behavior of the government.The phenomenon that the government implement anti-competitive behavior whichintervenes fair market competition is widespread in the world. However, due to theplanned economic system and the legal system imperfect, the situation that abusing ofexecutive power in China is much more serious than in developed countries. Themethod of comparative analysis is used to pointed out that the competition assessmentshould be established as soon as possible in addition improving provisions of antitrustand be cautious in dealing with the terms of competition in trade and investmentagreement negotiations on the international level. A comprehensive assessment ofcompetitive effects of the anti-competitive conduct of the government is carried outthrough a competitive assessment of the anti-competitive institutional arrangements.