2014-09-14

China Goes After Biggest Monopoly in the World: Government

China's anti-monopoly campaign has a new target: provincial governments.

Hebei charges in-province transportation firms half price on tolls and road fees, but this is ending as the province runs afoul of the anti-monopoly campaign.

From iFeng: 河北省政府遭反垄断调查 信号:重点排查行政垄断



Hebei has issued regulations, the province passenger transport enterprises enjoy half-price concession tolls, other provinces and inter-provincial transportation will not be able to enjoy. Implementation of the requirement for over a year, recently reported that the Korean Embassy to the NDRC is discriminatory provisions.

"Antitrust Law" implemented six years, the Hebei provincial government has therefore become the first being "anti-monopoly investigation," the provincial executive.

Event

NDRC ordered to correct

11, 2009, at the State Council Information Office briefing antitrust topics, the NDRC Price Supervision and Anti-Monopoly Bureau Xu Kunlin informed Hebei was "antitrust investigation" event.

Xukun Lin said that a few days ago, the NDRC Korean Embassy received reports: Hebei for local passenger transport enterprises to develop a preferential tolls playing on the break, but other provinces in interprovincial transportation is not entitled to this offer. A joint venture in Tianjin, China and South Korea failed to enjoy the preferential treatment.

Xukun Lin said the Hebei Provincial Communications Department, Price Bureau, the Department of Finance provides passenger transport enterprises in Hebei enjoy half-price concession tolls, allegedly discriminatory provisions. National Development and Reform Commission has recommended that law enforcement Hebei Provincial People's Government issued a letter of recommendation to correct the error immediately ordered three departments.

Hebei: corrective plan has been submitted

On the 12th, Hebei Province Price Bureau, Hebei Provincial Communications Department, said the Hebei provincial government has reported a rectification program, restoration of local vehicles and foreign vehicles the same price charged. The two units, the original reason for the development of the province of passenger vehicles enjoy half-price incentives, because "misreading" of the State Council.

"The State Council has issued documents province passenger vehicles enjoy preferential policies, we have made provisions half of local passenger vehicles." Hebei Province Price Bureau toll Director Cui said, "2013 Hebei introduction of the policy when Perhaps' misreading 'the provisions of the State Council, "Hebei Provincial Communications Department of Publicity Department Minister Li also said:." Hebei introduction of the policy of the relevant provisions of the State Council to understand when there is a problem. "

How misread?

Last November 28, the official website of Hebei Province Highway Administration has issued "ETC system province-speed passenger train tolls every effort to implement the preferential policies work," a text. The article said that the province will implement half-price incentives passenger vehicles, said the move Ministry of Transport Department to perform "Turnpike tolls vehicle classification" standard.

In the official website of the Ministry of Transport, reporter inquiries to the "Turnpike tolls vehicle classification" industry standard file the original. The document requires only the provinces, autonomous regions and municipalities directly under the Department of Transportation (Bureau of the Committee), according to the vehicle classification criteria documents, adjustment, toll road vehicles within a unified classification of the area, and then re-approved fees. However, local governments can not authorize a vehicle for local preferential policies.

Analysis

Anti-administrative monopoly at least 30 years

Few administrative organ to be treated

In the past it seems, are often antitrust investigation against a business, few investigations of administrative monopoly, but retroactive anti-administrative monopoly of legislative history, the time is not short.

As early as 1980, the State Council issued the "Interim Provisions on the development and protection of socialist competition", it was first proposed antitrust, especially anti-administrative monopoly task.

2008 promulgated the "anti-monopoly law," not only to "administrative monopoly" situation (such as "abuse of administrative power, the development contains eliminate or restrict competition Content", "to take the field specifically for administrative licensing of goods, limiting foreign goods into the local market." etc.) to make provision, but also a clear legal responsibility.

But for years, there is little administrative organs under investigation, let alone punishment. According to "Anti-Unfair Competition Law", government legal consequences of abuse of executive power by the superior authority shall order rectification; serious cases, by the same level or higher authorities directly responsible shall be given administrative sanctions. However, in China, the situation is "human above the law," often occurs, there is little "higher authorities" on the "lower bodies" such conduct inspection and supervision.

A thorough investigation of the release of "administrative monopoly" signal

The antimonopoly committee Expert Advisory Group, deputy head of Foreign Economic and Trade University Law School professor, said Huang Yong, administrative monopoly and the local economy are often closely linked, for alleged administrative monopoly department, to deal with the pressure and resistance are large.


Tsinghua University professor Hu Angang believes that administrative monopoly is corruption, monopoly market monopoly and administrative monopoly is divided into two, the market monopoly of the use of technological innovations, the occupation of the entire market, not corruption, and anti-monopoly law to make it restrictions. China's monopoly sectors are basically administrative monopoly, they make should benefit distribution pattern of destruction, administrative monopoly on the development of monopoly industries cause great harm, anti-administrative monopoly is a profound social change, to become China is currently the most important reform.

Huang Yong analysis, eighteen years, has repeatedly stressed that rationalize the relationship between the central government and the market, to market decentralization, especially in the Third Plenum proposed to play a decisive role in the market, so this time the NDRC issued to the Hebei provincial government's antitrust enforcement recommendation letter, has a positive meaning, a thorough investigation of the release of "administrative monopolies" signal. Integrated Beijing News, Xinhua News Agency reported

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