Economic And Legal Regulations On Government Subsidies To Public Utility Enterprises

Enterprises under the market economy system operate independently and are responsible for their own profits and losses.However,public utilities are related to the national economy and people's livelihood.They make profits by providing essential public infrastructure,services and other necessities to meet the needs of the overall interests of the society and achieve the goal of social public welfare.Considering the public nature of public utilities,such enterprises have long received a large amount of subsidies from the government or government resources to support their operation or make up for their losses.But in today's economy fast innovation,many utilities management is no longer simplification,but continue to expand business areas,not only engaged in the provision of public goods and services such as public class business,also actively carry out so many competitive business,strong even follow the wave of public utilities,to further broaden the financing channels.In the face of the increasingly complex and diversified public utility enterprises,if the government does not differentiate and still gives subsidies according to the original concept,the enterprise will gain unfair competitive advantages over other market players,restrict or even distort competition,and impact the normal market competition order.As a way for the government to intervene in social and economic activities,it is particularly important for the government to uphold the concept of competition neutrality.Therefore,on the basis of examining the utility of government-subsidized public utilities,we should take the neutral competition as the starting point,re-regulate the behavior of government-subsidized public utilities,and bring the basis,form and scale of government-subsidized public utilities,subsidy evaluation and otherprocedural activities into legal supervision.In terms of the specific system design,we can learn from the state aid system of the European Union,and reshape the economic and legal standard mechanism of government-subsidized public utilities that is suitable for China's national conditions,so as to achieve the goal of maintaining fair competition order in the market.The article is mainly divided into four parts: The first chapter introduces the basic theory of government subsidies for public utilities enterprises,starting from the analysis of the concept and characteristics of government subsidies,combines with the special subject of public utilities enterprises to explore the legitimacy of government subsidies for public utilities enterprises,and draws conclusions.Chapter II summarizes the current situation of government subsidies for public utilities enterprises in China through data statistics,and on this basis,analyses the existing problems of government subsidies for public utilities enterprises,finds that the regulatory mechanism of government subsidies for public utilities enterprises is inadequate,and urgently needs to be incorporated into legal supervision to maintain market competition;Chapter III introduces the EU countries.Through the analysis of the effective normative measures taken by the EU to maintain market competition,we can see that the EU has formed a complete normative system to restrict government subsidies to public utilities enterprises,to identify illegal government subsidies to public utilities enterprises,and to exempt China from general interest services.The construction of legal norm system in public utilities enterprises has important enlightenment or reference significance.Chapter IV is based on China's national conditions,should adhere to the position of competition neutrality,on the basis of drawing lessons from the advanced institutional experience of the European Union,put forward to improve the economic and legal normative mechanism of government-subsidized public utilities enterprises in line with China's characteristics.At the legislative level,it is necessary to form a multi-level and reasonably distributed legislative system,clarify the information disclosure rules of government-subsidized public utilities,and make government-subsidized public utilities Enterprises should be included in the scope of fair competition review,so as to promote the legalization of government subsidies and maintain fair and orderly market competition order.