Competitive Neutrality Rule In A Comparative Law Perspective Combined With Its International Law-making And Its Influence To China And Responeses

Competitive neutrality is a popular issue of international economic in recent years.Organization for Economic Co-operation and Development intents to promote thisrule and studies it as a significant research, in which competitive neutrality inAustralian Law and European Union Law and its legal practice is fully analyzed. U.S.is promoting competitive neutrality through its Free Trade Agreements, and its deputysecretary of state, Robert Hormats, pointed that China’s State-Owned Enterprisesshould compete in market on the square, which produced a strong reaction. However,most reaction ignored what competitive neutrality really is. Therefore, to clarifycompetitive neutrality as a legal rule is this dissertation’s fundamental goal.The first chapter begins with competitive neutrality rule’s background andinternational environment to prove its reasonableness. Through analyzing specificrules in Australian Law and European Union Law and this guidelines of Organizationfor Economic Co-operation and Development, a fair definition of competitiveneutrality is summarized: a legal rule that is enacted to guarantee a fair competitiveenvironment, enterprises which have public ownership, shall comply with competitivelaw, without unfair competitive advantages and government shall not grant theseadvantages.The second chapter focuses on the competitive neutrality rule itself in a competitivelaw perspective, including the specific rules in Australian Law and European Law,and judicial practices in Australia, European Union and the United States. Theconclusions of this chapter are the followings:a. The interpretation of competitive neutrality rule is being extended;b. Acts that violates competitive neutrality rule are various;c. Result-conditions that makes competitive neutrality rule applies are complicated.The third chapter begins with the international law-making of competitive neutrality rule. This tendency will potentially influence China’s international economicalcooperation with other countries, especially in the process of international treaties’negotiation. However, it is not necessary to overreact, because this tendency will notbe going smoothly due to the game played among the developed countries.Additionally, China would learn more experience from other countries andwell-prepared to negotiate.The fourth chapter is to analyze the influences abovementioned in details. First, thecompetitive neutrality rule shares a similar legitimate objective with China’scompetitive law. Second, China’s State-Owned Enterprises are likely bound by thecompetitive neutrality rule. Third, the subsidies enjoyed by China’s State-OwnedEnterprises are forbidden by competitive neutrality rule. Therefore, we should have acomprehensive and accurate understanding of competitive neutrality rule, bewell-prepared to enact the potential rules and promote the reform of State-OwnedEnterprises.