Anti-monopoly action
(China Daily)Updated: 2006-11-13 13:36
It will definitely test law-makers' wisdom to leave enough room during anti-monopoly legislation for further reform of State-owned enterprises and the administrative system while pressurizing them into better adapting to the market.
Meanwhile, another concern for legislators to speed up introduction of the law is China's increasing integration with the global economy. The country's opening-up has attracted numerous foreign investors over the past years and will continue to invite in more in coming years.
By opening domestic market wider to foreign competition, the country has been able to make fruitful use of foreign capital, technology and management to stimulate economic growth while allowing foreign investors to share the huge benefits of China's long-term growth story.
However, as new trends emerge in the use of foreign investment, legal preparation to safeguard national economic security becomes a matter of urgency.
Foreign companies are showing more interests in acquiring Chinese businesses than simply establishing joint ventures. With frequent overseas mergers and acquisitions, as well as those domestic ones, it is more than likely that new monopolies will form in certain industries in China.
An anti-monopoly law is thus badly needed to level the playing field for both domestic businesses and foreign players.
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