Market Power in China: Manifestations, Effects and Legislation

Market Power in China: Manifestations, Effects and Legislation This paper presents a picture of market power in China – its current situation, manifestations, causes, damaging effects and related economic laws and regulations. China is in a transition from a planned economy to a socialist market economy. Market power in China is reflected largely in administrative monopolies inherited from the old system, as well as in economic monopolies created by the new system. Administrative monopolies are worse than economic monopolies in terms of the distortion of transaction behavior and the preclusion of market competition. They have become a pressing issue facing China in its economic and social development. China has been developing a legislative framework on market competition, but this framework currently appears weak and powerless in the face of the administrative monopolies. However, the introduction of an anti-monopoly law will undoubtedly be helpful in enhancing the market competition mechanism. Review of Industrial Organization Springer Journals

Market Power in China: Manifestations, Effects and Legislation

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Kluwer Academic Publishers
Copyright © 2002 by Kluwer Academic Publishers
Economics; Industrial Organization; Microeconomics
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