Opinions of the State Council on Establishing a Fair Competition Review System in the Development of the Market System
Opinions of the State Council on Establishing a Fair Competition Review System in the Development of the Market System
Opinions of the State Council on Establishing a Fair Competition Review System in the Development of the Market System
Guo Fa [2016] No.34
June 1, 2016
People's governments of all provinces, autonomous regions and municipalities directly under the Central Government, and all ministries and commissions under and all institutions directly under the State Council,
Fair competition is the basic principle of the market economy, and an important foundation for the efficient operation of market mechanisms. As the reform of the economic system is constantly deepened, a nationwide unified market will be basically formed, and a fair competition environment will be gradually established. However, we should not disregard the existing phenomena that are not in line with the construction of a nationwide unified market and fair competition at the same time, such as local protection, regional blockades, industry barriers, enterprise monopoly, and illegal granting of preferential policies or impairment of the interests of market players. In order to standardize the relevant behaviors of the government, prevent the release of policy measures that exclude or restrict competition, and gradually clean up and abolish the provisions and practices that obstruct the nationwide unified market and fair competition, the following opinions are hereby put forward on establishing a fair competition review system in the development of the market system.
I. Fully Recognize the Importance and Urgency of Establishing a Fair Competition Review System
Firstly, fair competition is an objective need to further promote the reform of the economic system. The core of the reform of the economic system is to make the market play a decisive role in the allocation of resources and bring the role of the government into better play. A unified, open, competitive, and orderly market system is the basis for the market to play a decisive role in the allocation of resources. Establishing a fair competition review system can prevent excessive and inappropriate government intervention in the market. It is conducive to ensuring that the allocation of resources can achieve maximum benefits and best efficiency according to market rules, prices, and competition.
Secondly, fair competition is a powerful guarantee for comprehensively promoting the law-based governance of the country. Comprehensively promoting the law-based governance of the country requires the government to perform its functions in a comprehensive and correct manner and in accordance with the law. The Anti-monopoly Law of the People's Republic of China expressly prohibits administrative organs from abusing their administrative power to exclude or restrict market competition. Establishing a fair competition review system and perfecting the internal decision-making legitimacy review mechanism of administrative organs is conducive to ensuring the compliance of government behaviors with the requirements of the relevant laws and regulations, and the law-based administration of government.
Thirdly, fair competition is an inevitable choice to achieve innovation-driven development. Currently, Chinese economic development has entered the new normal, in which innovation must be relied on to drive sustainable and sound economic development. Enterprises are subjects of innovation, and fair competition is the important force for innovation. Establishing a fair competition review system and vigorously eliminating the bondage of systems that affect fair competition or hinder innovation is conducive to creating a fair competition market environment for popular entrepreneurship and innovation.
Fourthly, fair competition is an effective measure to vitalize market players. The economic development of China is in a critical driving force conversion period, when vigorously fostering new kinetic energy and transforming and upgrading traditional kinetic energy needs the full vitality of market players. Establishing a fair competition review system, reducing institutional transaction costs, and overcoming distorted market prices and behaviors, are helpful to arouse the enthusiasm and creativity of various market players, and cultivate and create new drivers of economic growth.
......
Guo Fa [2016] No.34
June 1, 2016
People's governments of all provinces, autonomous regions and municipalities directly under the Central Government, and all ministries and commissions under and all institutions directly under the State Council,
Fair competition is the basic principle of the market economy, and an important foundation for the efficient operation of market mechanisms. As the reform of the economic system is constantly deepened, a nationwide unified market will be basically formed, and a fair competition environment will be gradually established. However, we should not disregard the existing phenomena that are not in line with the construction of a nationwide unified market and fair competition at the same time, such as local protection, regional blockades, industry barriers, enterprise monopoly, and illegal granting of preferential policies or impairment of the interests of market players. In order to standardize the relevant behaviors of the government, prevent the release of policy measures that exclude or restrict competition, and gradually clean up and abolish the provisions and practices that obstruct the nationwide unified market and fair competition, the following opinions are hereby put forward on establishing a fair competition review system in the development of the market system.
I. Fully Recognize the Importance and Urgency of Establishing a Fair Competition Review System
Firstly, fair competition is an objective need to further promote the reform of the economic system. The core of the reform of the economic system is to make the market play a decisive role in the allocation of resources and bring the role of the government into better play. A unified, open, competitive, and orderly market system is the basis for the market to play a decisive role in the allocation of resources. Establishing a fair competition review system can prevent excessive and inappropriate government intervention in the market. It is conducive to ensuring that the allocation of resources can achieve maximum benefits and best efficiency according to market rules, prices, and competition.
Secondly, fair competition is a powerful guarantee for comprehensively promoting the law-based governance of the country. Comprehensively promoting the law-based governance of the country requires the government to perform its functions in a comprehensive and correct manner and in accordance with the law. The Anti-monopoly Law of the People's Republic of China expressly prohibits administrative organs from abusing their administrative power to exclude or restrict market competition. Establishing a fair competition review system and perfecting the internal decision-making legitimacy review mechanism of administrative organs is conducive to ensuring the compliance of government behaviors with the requirements of the relevant laws and regulations, and the law-based administration of government.
Thirdly, fair competition is an inevitable choice to achieve innovation-driven development. Currently, Chinese economic development has entered the new normal, in which innovation must be relied on to drive sustainable and sound economic development. Enterprises are subjects of innovation, and fair competition is the important force for innovation. Establishing a fair competition review system and vigorously eliminating the bondage of systems that affect fair competition or hinder innovation is conducive to creating a fair competition market environment for popular entrepreneurship and innovation.
Fourthly, fair competition is an effective measure to vitalize market players. The economic development of China is in a critical driving force conversion period, when vigorously fostering new kinetic energy and transforming and upgrading traditional kinetic energy needs the full vitality of market players. Establishing a fair competition review system, reducing institutional transaction costs, and overcoming distorted market prices and behaviors, are helpful to arouse the enthusiasm and creativity of various market players, and cultivate and create new drivers of economic growth.
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