Research On Legal Problems About Protection Of Private Enterprise In Reducing Excessive Coal Capacity

During the China's reform of supply front,the problem of excess production capacity of coal is one of the important problems that need to be solved.Reducing excessive coal capacity is one of the methods to solve this problem.This means that a large number of backward and inefficient capacities will beeliminated from the market gradually under the coordination of the government.The backward private coal enterprises are often the one that be withdrawn from the market.However,this does not mean the weak private coal enterprises can be squeezed outunfairly.Reducing the excessivecoal capacity has already become the top priority of some coal mine province before.Shanxi Province tried to reduce the excessive coal capacityby annexation and reorganization of coal enterprisesduring the Eleventh Five-Year Plan period.However,on the one hand,this action only took the size of the capacity as the standard without taking the various implement comprehensive factors and as a result,most of the smallprivate enterprises have naturally been the main the object of this action.On the other hand,the government has taken some illegal means to force the small private firms agreed to be withdrawn from the market in order to achieve performance as soon as possible by use of administrative power.The annexation and reorganization of coal enterprises in Shanxi Province became the infringement of property rights of private enterprises and the expansionof the state-owned enterprises.In fact,the main course of the conflict between the reduction of excessive coal capacity and the interests of the private enterprise coal to capacity is the lack of unified exit criteria and corresponding legal regulations whenenterprise withdrew from the coal market.After the concept of coal to the production capacity in the country,the Inner Mongolia Autonomous Region,Shaanxi Province and other places followed the practice of Shanxi Province,and this practice more or less did harm tothe interests of private enterprises in these areas.From the macroscopic perspective,both the reduction of coal capacity and the protection of the interests of the private enterprisesis to identify the market and government relationsin the final analysis.The market takesthe competition and efficiency as its highest pursuit.To realize the best status of the distribution of resource,market entities should be treated fairly and compete freely.The government should maintain the order of this withadministrative power rather than seek private gain through power.The law is playing the role of rules and regulations.To promote national industrial policy is implemented smoothly,it assists the government to control the marketand constrain excessive government intervention in market at the same time.From the microcosmic perspective,the coal market exit mechanism should be establishedto dissolve the crisis of excessive capacity reasonably and legally.To solve the problem ofinfringement upon private enterprises property rights,the law should protect the property of the private enterprises and prevent it fromthe excessive intervention of administrative power.What's more,the government's regulatory functionsshouldbe cleared and the government's administrative power should be limited.The government will be the one who promotes the coal market more fair and efficient.