A single matter, if repeatedly emphasized by various sides, is obviously important. This is absolutely the case with the release of the long-awaited Anti-Monopoly Law.
In a mature market economy environment, any enterprise that strives for development has to be competitive. Preconditions for corporate competition are a fair, open market; and the freedom to compete. This is as opposed to a monopoly which fundamentally hurts opportunities for most enterprises, and is naturally opposed by all sides including the state, enterprises, and consumers.
Industrial development cannot afford another delay in the release of the Anti-Monopoly Law. At home, Microsoft's Windows operation system and Tetra Pak's soft packaging drinks have grasped nearly 95 percent of market shares. China's strong-looking DVD sector has it's "backbone" taken out by foreign-funded companies who monopolize standards and technologies; and therefore take patent fees. According to a survey by the State Administration for Industry and Commerce, domestic markets for operation systems and supportive software are largely dominated by foreign software producers.
Effective, free competition is a guarantee for increasing economic efficiency, optimizing market resources distribution, and maximizing consumers' interests. These are part of the central goal in our formulation of the Law. It explicitly stipulates that enterprises can sharpen their competitive edge by expanding their business scale; and forming a coalition on a fair and voluntary basis. By protecting the competition mechanism, the Law will be active in supporting various enterprises in becoming larger and stronger on the basis of fair competition. Correspondingly, its opposition to the misuse of market status will help standardize monopolizing enterprises. The Law requires the examination of mergers and acquisitions involving foreign funds that will help China participate in global competition; and it also strictly forbids an administrative monopoly – including local protectionism – so as to ratify market orders.
The release of the Anti-Monopoly Law signifies a new stage of anti-monopoly efforts and indicates continuous improvement in China's socialist market economy. It makes room for corporate development and creates more opportunities for enterprises. Since competition is the general trend in anti-monopoly laws of various countries and rules of the market economy system; enterprises would be wise to reduce their dependence on protectionism, and enhance their strength through technological and managerial innovation.
The release and execution of the Anti-Monopoly Law is a key step in fostering a competitive culture. It cannot solve every problem, but will surely promote the understanding of market competition rules; sharpen consumers' identification with a competitive culture; and enhance the government's understanding of market economy rules.
By People's Daily Online
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