Monopolies either foreign or domestic affect market economy,
says an article in Yangcheng Evening News. The following
is an excerpt:
According to a report by the Ministry of Commerce, China does
not face an imminent risk of foreign monopolies in any industry.
Instead, most monopolies in this country are state-owned
enterprises.
The report has erased speculation about foreign monopolies in
China's key industries.
However, monopolies, whether foreign or state-owned, are a
potential threat to the soundness of a country's economy. This is
of common knowledge.
In recent years, some justified the existence of state-owned
monopolies in petroleum, electricity and other industries as they
guarantee the country's economic security.
Such a belief does not hold water.
When important industries are monopolized the competence of a
country's economy is diminished. The lucrative profits gained
through monopolies remain in their hands instead of being used to
promote public welfare.
Thus, social wealth is not distributed in a fair way, widening
the gap between the rich and the poor, and weakening consumer
consumption.
As pointed out by the Ministry of Commerce in its latest report,
the country's economic security is better protected when a market
is more open.
With proper administrative supervision, domestic companies,
whether state-owned or private, can be improved. And they may
perform even better when foreign competitors are allowed in.
(China Daily September 12, 2007)