By Shi Yaodong & Zhou Yi, Research Team on “A Review of the Experience of Reform and Opening up over the Past 40 Years”, DRC

Research Report, No.118, 2019 (Total 5618) 2019-7-22

Abstract: To advance the reform of monopolized industries is the objective requirement to further the supply-side structural reform and improve the socialist market economic system in the new era, as well as the internal logic to form a new, comprehensive and opening pattern and to promote high-quality development. The paper first analyzes the challenges in furthering monopolized industrial reform at present stage. For instance, market access barriers have not yet removed across the board, pricing mechanism is not in proper place, investment and financing channels are not smooth and fiscal and tax incentive mechanisms are still inappropriate. Then it puts forward three basic principles and general directions for the reform to follow. Namely, the reform needs to straighten out the relations between the government and the market, adhere to a coordinated promotion of development and reform, and stick to the principle of opening up both at home and abroad. It finally boils down to some policy options for advancing the reform of monopolized industries in the future, including improving the top-level design to deepen reform in an orderly manner, furthering the reform of state-owned enterprises and state capital to shape qualified micro-entities, advancing the reform of pricing mechanism to optimize the market structure aimed at effective competition, giving preference to the incentive-oriented formation of investment mechanism and perfecting the management system.

Key words: reform of monopolized industries, challenge, countermeasures