By Zhang Liang (General Office of DRC) &Liu Yicheng (Tianjin Municipal Development and Reform Commission)

Research Report No 122, 2015 (Total 4807)

Abstract:

China has long laid particular stress on industry policy, which has played a significant role in expanding the economic aggregate. However, less stress is placed on the application of competition policy, which is not conducive to breaking monopoly or enhancing positive competition, and consequently hampers the improvement of resources allocation efficiency. In view of the facts that the present industry policy remains to be improved, China's economic development has entered a state of new normal after years of swift progress, and it is necessary for China to stimulate market vigor and allow market to play the decisive role in allocating resources, we should focus more efforts on leveraging the role of competition policy and coordinate the application of both industry and competition policies. In the future, we should nurture an environment compatible for market system and improve relevant orders and rules for a competitive market. All government bodies should follow the statutory principles in line with relevant functions of power and responsibilities to maintain competition order and enhance market vitality, promote the respective application of industry policy and competition policy in light of local conditions, adopt targeted policies in competitive and non-competitive industrial fields, and formulate and implement policies for market entities according to principles of impartiality and competitiveness in order to better boost China's continued and healthy economic and social development.