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Monopolies have harmed the economy and public interests for too long, says a signed article in Beijing News. An excerpt follows:

 

The issue of monopolies has been in the spotlight during this years' sessions of the National People's Congress (NPC) and the Chinese People's Political Consultative Conference (CPPCC).

 

Consensus on the need to break monopolies has been growing in recent years. The 11th Five-Year Guidelines (2006-10) suggests the government accelerates reform in monopoly industries, and optimizes the economic structure with non-State investments.

 

Monopolies harm market efficiency, and as NPC delegates and CPPCC members pointed out, harm public interests. Such a view can be understood from four aspects.

 

First, without effective supervision and competition, monopoly enterprises have perpetrated unlawful activities, as exposed by the National Audit Office.

 

Second, monopolies have led to unfair distribution of social incomes. The average income of employees of the finance, power, water, gas, and telecommunication industries is higher than the average level.

 

Third, monopolies have led to high prices, damaging the living conditions of low earners. The prices of water, electricity and gas have increased in hundreds of cities in the past year. Monopolistic enterprises complained that they were making losses with the previous low prices, but in fact the problem was that their employees were enjoying far better salaries and welfare than people in some other industries. The price hike harms low earners the most.

 

Fourth, monopolies have impeded market reform and degraded China's competitiveness. Their existence has meant limitations on non-State capital, which is not good for the country's technological and industrial advancement.

 

Therefore, it is a necessity to break monopolies and open the market, for better economic results and the public interests.

 

The government should make a choice when examining the monopoly issue.

 

(China Daily March 14, 2006)