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By Xiang Anbo, Shan Yanfei & Xu Yingjie, Enterprise Research Institute, DRC; Shi Ying, Institute of Economic System and Management at National Development and Reform Commission

Research Report, No.137, 2021 (Total 6202) 2021-5-27

Abstract: The principle of competitive neutrality was at first proposed by Australia based on its domestic system, it was later included into the international soft law and finally it was incorporated into the international bilateral and multilateral free trade agreements. In the course of evolution, the principle of competitive neutrality, by taking a new approach tried to flesh out the relations between government and the market in a coordination manner, and has become a consensus on the rules and regulations with high standards and wide coverage. It reflects the intensified institutional struggles among different countries vying for competitive power in the present world. The phased-in evolution and diversified practice of competitive neutrality on a global scale has offered us relevant enlightenments. One, the introduction of competitive neutrality principle needs to be conducive to promoting the welfare of the whole society across the board; Two, the implementation of competitive neutrality principle needs to have relatively independent institutions with strong authority to offer guidance and supervision. Based on a sound implementation mechanism, these institutions need to cast their eyes over the evaluation work and roll out policy options for different eventualities; three, we need to refer to the competitive neutrality principle to enhance the institutional mechanisms for fair competition and take the initiative to come up with a competitive neutrality regulation system in line with China’s conditions.

Keywords: competitive neutrality, rules and regulations of international trade and economics, SOE reform