Nan Cunhui: Breaking the Monopoly

By staff reporter Zhu Hong

CPPCC member and Chint Group chairman Nan Cunhui called for accelerated government efforts to break up monopolies and create more opportunities for private businesses.

"Reforms to monopolized sectors are lagging far behind, impeding China's social and economic development and encouraging shady practices. Barriers to private investment— metaphorically known as glass doors, swinging doors and revolving doors — have not been knocked down," Nan commented at the ongoing annual session of the political advisory body.

He said the slow progress can be attributed to three reasons: first, there are inconsistencies and legal ambiguities between old and new rules; second, there is limited market access for private capital; third, resistance from monopoly corporations.  

Mr. Nan gave an example of the railway system. "Last March the Ministry of Railways was split into administrative and commercial arms. But so far there have only been minor reforms; barely cracking open the door for private investment. To the date there is only one planned railway involving private investment in the entire country . Actual ownership and operational rights for any kind of railway are unobtainable for private investors."

Mr. Nan stressed that private businesses, though of minor economic strength, have important advantages over large state-owned enterprises. Because of the profit motive they are apt to discover new business opportunities, respond quickly to market changes and possess strong incentives towards innovation and creativity. Given an even playing field, they can make enormous contributions to China's economic development.