Chapter 12 Chapter 11 Anti-Monopoly: China’s Wealth Reshuffle

After earning money, don't give it to the country or the people, and spend it yourself. Isn't this "helping the rich"?Apart from changes in statistical methods, are there any more fundamental reasons for the rapid decline in the share of labor income in the primary distribution? Bai Chongen: Of course.The most important issue is the restructuring of state-owned enterprises and the increase of monopoly problems.If there were any problems in the initial distribution, the main reason was monopoly.First, monopoly reduces the proportion of labor's overall income.The total profits of monopoly enterprises are relatively large, so the proportion of labor income in the total income of enterprises is low.Second, monopoly leads to unreasonable distribution of labor income among laborers. The wages of monopoly enterprises are relatively high, while wages of other enterprises are relatively low.Moreover, the problem of monopoly formation cannot be solved by administrative intervention to increase the income of other workers.Administrative wage increases have the consequence of reducing employment.There is a saying in economics that is "substitution between capital and labor". When labor costs increase, the employed population will decrease, which will cause the initial distribution to be more unequal.Therefore, the most important thing is to break the monopoly or weaken the monopoly, this is the fundamental way.Breaking up the monopoly requires a lot of political will.

First of all, we need to review the necessity of administrative monopoly. What kind of industries need administrative monopoly and what kind of industries don't?The conditions for administrative monopoly are related to the national economy and the people's livelihood, strategic industries and industries.What kind of industry is strategic?Are strategic industry values ​​worth protecting?Debatable.For example, in the energy industry, there are three oil companies and ten oil companies in the industry. If they are all controlled by the Chinese, the strategy will not be affected.Then, the degree of competition between the three companies and the ten companies becomes different. In other words, strategy and competition are not necessarily contradictory, but people often regard the two as opposites.In fact national interest and competition are not necessarily contradictory.Therefore, the impact of the financial crisis in China is not only the economy, but also diverts people's attention.In fact, the economic crisis is only worse. We already have problems, which cannot be completely attributed to the impact of the financial crisis.At present, some departments and enterprises are playing the banner of protecting national industries. On the surface, it is related to the national economy and people's livelihood, but in fact it is related to their vested interests.

Why is the monopoly process called "robbing the poor and helping the rich"?Because the products produced by monopoly enterprises are ultimately consumed by ordinary people. As long as they are monopoly products, the price will be high. This is "robbing the poor"; ".If monopoly enterprises can pay dividends, and part of it is converted into labor income in the form of social security funds, it will become the income of ordinary people.Therefore, this redistribution of interests is a very beneficial way, because it is difficult to break the monopoly at one time, but it can require monopoly companies to pay more dividends and open a gap.Recently, the State-owned Assets Supervision and Administration Commission transferred 10% of the equity to social security. I think it is still not enough. The excess profit of the enterprise far exceeds 10%.In fact, some of the money was wasted, and some was divided.To put it bluntly, since you earn money for the "national interest", you have to redistribute it to the people.However, this vested interest is very powerful politically, and it is possible to promote the anti-monopoly process only if there is enough pressure.There is no good way now, but it can only be pushed forward by the people, and the common people must realize that monopoly directly hurts their own interests.Now everyone just thinks that it has nothing to do with them. In fact, the interests of monopoly originally come from laborers.

There are many disadvantages of monopoly. One is that the profit of monopoly is very high, but the efficiency is very low; the other is that it has a great impact on innovation-in order to maintain its position, monopoly enterprises do not want to innovate, and new enterprises grow up. It will suppress the interests of the monopoly class; third, monopoly will lead to a serious imbalance in the allocation of human resources.Outstanding graduates from key universities trained by the state are all "assigned" to monopoly enterprises, and monopoly enterprises do not innovate, and talents become decorations, which is a serious waste.The reason is simple. Monopoly companies do have higher incomes than other units. They are motivated by profit, and these students cannot be blamed.The interests of monopoly have their own continuous vitality. So many people sharpen their heads to drill in, and after entering, they will naturally defend their inherent vested interests.This is a path of vicious circle, which will destroy the future of the country.So how to let go of the monopoly market?Some should start by opening up to domestic investors, but we should be more cautious about foreign investment.In fact, our social capital is very powerful, especially the access to the information and communication industry should be more open.The high-tech industry is the source of future innovation. For example, many enterprises in Zhongguancun have very good technology, but due to the high barriers to entry, they need to cooperate with monopolies to enter.Therefore, it is difficult to give a general policy recommendation for breaking monopoly. The forms of monopoly in different industries are different, and the measures taken are also different.For example, in the banking and communications industries, communications can be liberalized, but banks cannot be liberalized. What banks need to do is to liberalize interest rates.There is a big difference between the two, and policy cannot be one-size-fits-all.

China is a market economy favored by the government.When it comes to institutional issues, in fact, the administrative monopoly of industries is quite serious in China, which is inconsistent with the requirements of establishing a market economy. Wei Jie: Now our industries are too monopolized, such as oil, petrochemicals, communications, public transportation, etc. Anti-monopoly is a big problem.I think that industries that do not involve the lifeline of the national economy can be liberalized to allow private enterprises to participate in the operation; those that involve the lifeblood of the national economy can be established as joint-stock enterprises and let the state relatively control them.The reason why the country has been unable to let go of monopoly industries is that it is still a government-based system.

There is a very interesting phenomenon in China's economy, which is different from the market economy and the planned economy: the operation emphasizes the market economy, but in the end it is the government that controls it, and the government directly participates in the control of this industry. The government is supposed to provide services, and it can use fiscal and monetary policies to carry out macro-control, but now the government is doing industry regulation, and everything needs to be approved by the National Development and Reform Commission. It is obviously a market economy that the government prefers.

It relies on the intelligence of certain elites, rather than on the choice of the market. Once a problem occurs, it will be a crisis.Mr. Wu Jinglian has a saying that is "capitalism of the rich and powerful"; I call the market economy without equal exchange "market economy of the rich and powerful", because it is not a simple market that works, but the rich and powerful are at work, and the price is distorted .One is to truly move towards a mixed economy on the basis of the economy, and the other is to develop democracy on the superstructure.Only under democratic conditions can it really play a role in restricting the powerful and solve the problem.These two are the most effective methods, but it is difficult for us to realize them for a while.What China can do right now is democratic supervision.With the increasing development of information media such as the Internet, democratic supervision has gradually achieved results.The excessive expansion of public power can be effectively restrained through democratic supervision, but democratic choices may take longer to be realized.To promote a mixed economic system, the constitution must be amended—the time has come for it to be changed.

It is no longer realistic to say that the public sector of the economy is the mainstay and that multiple economic systems coexist.Because there are four main criteria for evaluating whether an economy is primary or secondary: one is the contribution to GDP, and now the non-public economy contributes more than 60% to GDP; Rely on private enterprises; third, the contribution to employment, more than 90% of employment is due to private enterprises; fourth, technological innovation, the vast majority of our patents last year came from the private economy. At the same time, the 17th National Congress of the Communist Party of China proposed that in order to increase people's property-based income, the capital market and the real estate market must be liberalized. In this way, it is difficult to say who is in charge and who is in charge, and it is difficult to justify themselves.So, there is no waiting for anyone to move towards a mixed economy.If we establish a mixed economic state, we can eliminate industry barriers and industry monopoly, which is conducive to economic development.Changes in the capital structure of an enterprise will naturally eliminate monopoly.One of our mixed economies is a social form and the other is an enterprise form.A mixed economy that has become a corporate form is a real mixed economy, which can truly solve the problem of ideology.The direction of state-owned enterprise reform is the corporate shareholding system, which is the mixed economic system.

Monopoly is like a "glass door", which seems to be open, but in fact it cannot be entered.The previous economic development was largely achieved by relying on resources and monopoly. Can the barriers of monopoly industries be broken? Zhang Zhuoyuan: It is very difficult for private capital to enter some monopoly industries, including finance, telecommunications, etc., especially railways. The problem of "iron boss" has not been resolved yet.When it is a monopoly, any expenses are counted as costs, and people can't figure out whether it is making money or losing money.A very important part of the solution is to "top-down" and find people outside of interests to design the reform plan.For example, the reform of railways must be approved by the Ministry of Railways, which would be very difficult.Interest groups that have formed naturally want to protect their own interests.Therefore, the reform must be pushed forward vigorously from top to bottom.

Now deep-level reforms dare not be taken lightly, and vested interests are strongly resisting.This reminds me of the fiscal and taxation reform in 1994. Premier Zhu Rongji spent a lot of energy on it. He traveled to more than 30 provinces and discussed it one by one. It was quite difficult!However, the results were relatively successful, and it is too difficult to implement that kind of reform now. The reforms in 1998 are also worthy of our reference, such as finance, why so many small and medium-sized enterprises have closed down?It is because there are too few small and medium-sized banks!Of course, there will still be regulatory issues when opening up, but you have to open up first.However, we must be soberly aware that it is difficult to break the monopoly. It is like a "glass door", which seems to be open, but in fact cannot be entered.The burden on private enterprises is very heavy. Now ordinary people want to start a small business. The public security, urban management, taxation, and even the streets... have a very bad atmosphere. If you take it and ask for it, you will be fined if you don’t give it!I always feel that the anti-corruption efforts are still too light.

Monopoly is now not just an economic issue. Since the beginning of 2009, mergers and acquisitions of large state-owned enterprises have occurred from time to time, and state-owned enterprise restructuring led by local governments has continued.It can be said that as soon as the "Anti-Monopoly Law" was promulgated after 12 years of long preparation, a new round of consolidation of state-owned enterprises in China set off a wave.Although there are loud calls from the outside world that the reorganization of central enterprises should be included in the scope of the "Anti-Monopoly Law", the attitude of law enforcement agencies is still vague. Sheng Hong: In China, monopoly is not just an economic issue, but a political issue, even a constitutional issue.Because this problem has lasted for a long time, it has evolved into a series of problems, manifested as a systematic error.This includes, first, state-owned enterprises occupy the country's scarce natural resources (such as oil), but in fact do not pay resource rents at the market level; second, the same is true for land, a large number of state-owned enterprises, state-owned farms, forest farms Third, the state-owned enterprises have not handed over their profits for 14 years; fourth, the wages and bonuses of employees of state-owned enterprises are also unlimited, which squeezes out profits.Putting the above problems together, it becomes a systemic problem, that is, the policy systematically favors state-owned enterprises, their management and employees, and harms the interests of the people of the whole country.To sum it up in one sentence, the people of the whole country hand over their resources and property to a group, hoping that they will operate well, and then hope to benefit from it.But what needs to be vigilant now is that they use the resources of the people of the whole country to benefit themselves, but the people can't see what they can get from it. Therefore, people want to change this situation.But now I find that it is very difficult to change.Because monopoly interest groups often use the banner of national strategy, and state-owned enterprises are often founded and supported by the government, they have caused extremely profound damage to the government and the ruling party, because it violates the most basic principles of property rights and constitutional principles.It is a matter of course for anyone in power to accept some basic principles that everyone agrees on, that is, the basic principle of property rights.However, the current situation is that in front of the people of the whole country, some interest groups are openly stealing and plundering the property of the people of the whole country, and they take it for granted.In fact, if things go on like this, the biggest losers are our government and the ruling party.Those people put money into their own pockets, and what the common people see is not those people, but the government, and the people will have distrust of the ruling party. I think this is imminent.To be honest, I am very worried about this matter, and worry about our ruling party.The number of employees of Sinopec is 15 times that of foreign companies of the same size.You are the world-saving complex of Chinese intellectuals "creating peace for all generations".But is there any more quantitative data on the phenomenon you pointed out? Sheng Hong: Let us now estimate how much land rent has not been paid.First, our state-owned farm land is about 588.3 million mu. Based on the land rent of 400 yuan per mu, the land rent in 2007 is about 235.3 billion yuan. Second, the state-owned mines occupy an area of ​​about 11.31 million mu, and the land rent is estimated at 1,500 yuan per mu. , also 16.9 billion yuan. There is another estimate. I found the area of ​​state-owned residential areas and industrial land on the "China Earth System Science Data Sharing Network". The data from 1984 to 1995 was 4.26 million hectares, or about 72.9 million mu. In August 2009, the average land price in 35 cities was 3,189 yuan/square meter. I assume the national average is 1,500 yuan/square meter. If the land rent is calculated at 4%, it is about 60 yuan/square meter, which is nearly 40,000 yuan per mu.Another part is industrial land.According to the Ministry of Land and Resources' lowest industrial land transfer price, the seventh grade is 192,000 yuan/mu, and the land rent is estimated at 4%, which is about 7,680 yuan/mu.Assuming that residential land and industrial land are divided into half, we finally estimate that the rent of state-owned residential and industrial land is about 1,736.5 billion yuan.Because some state-owned land has been sold through bidding, auction and listing, it is equivalent to a one-time recovery of land rent.This part is about 30%, so it needs to be eliminated.After excluding them, the rent of state-owned residential areas and industrial land that we have lost is about at least 1,215.5 billion yuan per year. This is an estimate.The above numbers add up to 1,467.8 billion yuan.I haven't counted the rent of state-owned garden land and state-owned pasture land.From this point of view, the annual profit of state-owned land that is not handed over is 1.4 trillion yuan, which is conservatively estimated to be 1 trillion yuan; and the current gross national product is only 30 trillion yuan, and the annual fiscal tax is 5 trillion yuan. ~6 trillion yuan. Furthermore, PetroChina and Sinopec did not pay the rent of oil resources according to the market level. They only pay 30 yuan per ton. In fact, at least 10% of the rent level is at least 300-400 yuan per ton. If 100 million tons is more than 300 yuan billion.In recent years, although the country has imposed a special benefit fee, it was after the price of oil exceeded 40 US dollars per barrel.Also, there is no profit turned over.Since 1994, we have not seen the records of these state-owned enterprises handing over their profits. Although it is stipulated that they will hand over a maximum of 10% from 2008, we still have not found where the data of this 10% is.In fact, by 2008, the accumulative profits that have not been handed over in these years amounted to 7,181.1 billion yuan, and in 2009 it may reach more than 8 trillion yuan.After state-owned resources are occupied, they can also be leased and sold.For example, the heads of state-owned farms can rent out the land, and the rent is enjoyed by themselves; in cities, they can rent out state-owned houses and so on.In terms of land rent, it now amounts to trillions of yuan every year, and it is no problem to add up to more than 5 trillion yuan.It is said that the rent must belong to the landowner, but the flow of the 5 trillion yuan is unknown.Since the salaries of state-owned enterprise executives and employees are linked to profits, part of the rent of state-owned land has become bonuses for executives and employees. The 2002 "Opinions on Deepening the Reform of the Internal Personnel and Labor Distribution System of State-owned Enterprises" stipulates that state-owned enterprises independently determine the wage level of the enterprise based on the average wages of the local society and the economic benefits of the enterprise.Everyone can understand this.Also, the State-owned Assets Supervision and Administration Commission has a document "Trial Measures for Implementing Equity Incentives in State-owned Holding Listed Companies". This method can use the company's equity to motivate executives. The maximum is 1%, which is about 30% to 40% of the salary. What does it mean? Woolen cloth?He has the right to share the profit, and part of the profit is obtained by paying less land rent and resource rent.Whether it is 2 to 3 times that of ordinary companies mentioned by the former Vice Minister of Labor Bu Zhengfa, or the 60,000 to 70,000 yuan a year disclosed by the media, and the highest annual price of 123,600 yuan for China Mobile (about the national average) 7 times the salary), are just the tip of the iceberg.Because it is conceivable that this is a high salary based on overstaffing.According to a research report, the number of employees of Sinopec is 15 times that of foreign companies of the same scale, such as Italy's Eni Group.What affects income distribution more seriously is the "legal" encroachment of monopoly interest groups. For the unfair distribution of social income, the public usually attributes it more to official corruption.What do you think about this? Sheng Hong: People associate official corruption with unfair income distribution, which is obviously true.Yet corruption is an illegal act, and legal deterrents make corruption an unsystematic error. People seldom pay attention to the more serious impact on income distribution is the "legal" encroachment of monopoly interest groups.Because they are fighting for the interests of a group, those who strive for it have no sense of guilt; these departments are mostly in strategic areas with scarce resources, and they can use the banner of national interests when fighting for the interests of their own departments; and because of our country's constitutional government The disadvantage is that the administrative department has the actual legislative power, and the monopoly power can be obtained by issuing a "opinion" of the department.With a "legal" monopoly position, a monopoly can reach out to consumers with one hand and the state treasury with the other.According to a research report, the government of oil-resourced countries accounts for the share of total profits, including mining royalties, profit sharing and taxes.In developed countries (such as the United States), it is about 60% to 70%, in developing countries it is about 75% to 85%, and in some countries it is as high as 90%.In my country, although profits are greatly squeezed by costs such as wages and benefits, according to PetroChina's 2005 financial statements, the government's income still only accounts for 40%; according to Sinopec's 2005 financial statements, this proportion is only 54%.What is even more absurd is that although Sinopec earned a huge operating profit of 50.9 billion yuan in 2005, it still demanded 10 billion yuan in subsidies from the central government. According to the relatively conservative 70% standard, CNPC should have 135.7 billion yuan of its total profits in 2005 going to the central government, and Sinopec should have 31.8 billion yuan going to the central government, and 10 billion yuan of subsidies should be cancelled.On the other hand, facing thousands of consumers, the advantage of monopolies is more obvious.For example, as technology advances, the cost of telecommunications services is falling rapidly, but prices have not.This is due to price regulation influenced by monopoly power; it is also due to the fact that telecom giants use their monopoly position and technical means from time to time to prevent competition among telecom companies and maintain their high prices.Relevant experts point out that the telecommunication consumption of Chinese residents accounts for as much as 7% of their income, which is much higher than the 2% in developed telecommunication countries.It can be found that as long as there is a monopoly in one industry, the whole society, including the treasury and consumers, may have hundreds of billions of yuan in income robbed every year; ten monopoly industries will transfer trillions of yuan in income.This is equivalent to a certain fraction of my country's annual GDP, and it is also equivalent to the fact that a large share of the income of every Chinese person has been robbed by monopoly departments.This part of the huge benefits is distributed according to the internal rules of the monopoly sector.In addition to nominal wages, non-monetary high benefits such as housing are also included. Not to mention, in addition to wages and benefits, there are so-called "job consumption", including driving a luxury bus and staying in a five-star hotel on business trips...the biggest problem is that corruption breeds. For example, Chen Tonghai spends more than 120 yuan a month. Consumption of 10,000 yuan, embezzlement of nearly 200 million yuan.According to a survey, among 99 mainland guests in Macau casinos, “59 of them worked in the government or related departments: 33 of them were government officials, 19 were principals of state-owned enterprises, and 7 were cash tellers in government and banking departments.”It can be seen that the funds of state-owned enterprises are being squandered wantonly.Due to the existence of its monopoly position, it may do everything possible to influence the national policy, making the policy unfair.Therefore, the current policy has made a systematic mistake of protecting the management of state-owned enterprises.The problems of resource rent and profit handing over have now become unsolvable problems.We all know that this is due to the existence of monopoly interest groups.According to reports, the government wants to introduce a system to standardize the remuneration of executives of state-owned enterprises, but a solution to the problem of state-owned enterprise profits handing over is still far away.There are comments that this involves allocation issues, so it is difficult.This shows that the management of these central enterprises has regarded the profits belonging to the people as their own vested interests.When the people want to come back, they are already sorry.However, it seems that we can't wait any longer, and one year is more than one trillion. "The country does not take profit for profit, but righteousness for profit."You like to use the ideological resources in traditional Chinese culture to analyze the current social transformation. This kind of combined research is more innovative and compares China. Sheng Hong: Including analysis of international and domestic issues and value judgments, we can use a lot of Confucian resources.For example, there is a sentence in "University": "The country does not take profit as profit, but righteousness as profit." It means that a country and the government should not take general commercial interests as their own interests, but use "righteousness" as their own interests. For the heavy.Confucianism talks about "the sum of the interests of the righteous", which means that the so-called "righteousness" and the so-called "justice" are the balance of conflicting interests, so that political governance can be consolidated.It is interesting to trace the origin of the state in this way.Whether in the tribal era, priests collected tribute and sacrifices from tribal members, or in the feudal era, those who violently seized power collected taxes from the people, all in order to maintain the operation of the entire tribe or state machinery.The key lies in whether this machine can provide public goods, that is, to protect property rights, maintain legitimate order, and provide fair justice. This is called "righteousness."And "making righteousness for profit" means that the government can collect taxes.Since public goods are provided to the people, taxation is the cost of purchasing public services.This is the deep-rooted thought of Confucianism.Therefore, it will be beneficial for the government not to get involved in the commercial field and to do a good job in its own public services.Taxes are actually service fees, and the initial one is security services: in tribal or religious societies, it provides people with a kind of "psychological counseling" and psychological comfort, saying that the gods will keep the weather in order; The environment must be safe for the people. "Taxing taxes" implicitly includes two-way obligations: citizens pay taxes to the government, and the government provides public goods to citizens.However, in practice, due to the asymmetry in means between the government and citizens, the government can force citizens to pay taxes, but citizens have no means to make the government perform its duties.So it is more likely that the party that is under-fulfilling its obligations is not the citizens but the government. "The country does not take profit for profit, but righteousness for profit" is a constitutional principle.This is the positioning of the government, the boundaries of the government.There are many similar expressions in Confucianism, among which the situation discussed in "Salt and Iron Theory" is very similar to the present.At that time, the censors believed that in order to protect national security and fight against the Xiongnu, the imperial court had to amass some wealth for military expenditure, so the government needed to monopolize salt and iron, etc., and the government had to enter the general business field.This was opposed by the so-called virtuous literature, because it led to monopoly and corruption, and thus promoted the militarism of Emperor Wu of the Han Dynasty. "Do not compete with the people for profit" is a very important constitutional principle of Confucianism.For general commercial interests such as coal mines and steel, the government intervenes to compete for profits.The meaning of striving for profit is not snatching but competition.There is an idiom called "pull sunflowers to weave", which means that when a person becomes an official, he pulls out his own crops and destroys the loom when he returns home. Because he already has a salary, he should stop being with the people. Competing for profits in the market.Therefore, the ancient Confucian constitutional principles are very instructive today. Regarding the issue of borders and transgressions, we need to form a set of constitutional principles, including traditional Chinese ideas and Western constitutional democratic systems. We can absorb good things from both China and foreign countries and extract them from existing constitutional principles to serve as the institutional foundation of the Republic.In this way, China's development will have a bright future.Thoughts such as Mencius and Laozi have also been applied to the issue of property rights, which is very beneficial from the perspective of ideological enlightenment.In 2008, I wrote "The Mandate of Heaven and Civil Rights", which talked about the basic constitutional principles of traditional China, that is, the issue of political legitimacy.Political legitimacy is not inherent, but depends on the actions of political groups.For the ruling party, it is necessary to remain vigilant, trembling as if walking on thin ice, as if facing an abyss, and thinking of the people at all times.Mencius also said: The people are the most important, the community is second, and the monarch is the least.We must carefully understand the constitutional implications of such an order.There must be a sense of crisis and reform.Russian President Dmitry Medvedev recently stated that state-owned enterprises must either be reformed or disappear.This is also a warning to our country.The monopoly interest dispute is the biggest problem now.Departmental interests cannot be placed above national interests, otherwise the final loss will be the entire country and the people. For example, when Japan invaded China back then, it might not be the Japanese government that wanted to fight, but the military wanted to fight, and the whole was controlled by some parts. This is a very scary phenomenon.Therefore, whether it is the Western parliament or the Chinese National People's Congress, as a power organ, it must play its role and truly restrict the interests of departments. How to break the monopoly situation?You mentioned above some disadvantages of state-owned monopoly enterprises, so in the end we have to seek a practical solution.Specifically, how do you think the profits of state-owned enterprises should be distributed? Sheng Hong: This question ultimately needs to clarify and strengthen the constitutional principles of the state-owned property rights system.be based on the constitution.The Constitution stipulates that we are a socialist market economy, which means that we must allocate resources based on market mechanisms, have a modern property rights system, and maintain and enforce contract order.The Constitution also stipulates that the state-owned economy is a socialist economy owned by the whole people, which means that state-owned enterprises are owned by the whole people, which is a specific property rights system.State-owned property rights are also property rights, and they must follow the general principles of enterprises, companies, and property rights systems, including that the income from property rights belongs to the owner of the property rights, and that it is an absolute obligation for enterprises to turn over profits, and there is no room for bargaining.We must strictly distinguish between rent, tax and profit.The rent of the natural environment, such as land rent and rent of mineral resources, is included in the profits of state-owned enterprises. At the same time, the problem of indivisibility between profits and taxes has always existed and should be strictly distinguished.Rent is the remuneration of factors, especially natural resources, tax is the cost of public goods, and interest is the benefit of property rights.It is necessary to clarify the legal procedures for profit distribution of state-owned enterprises.There are two options: the first is to amend the law, modify the "Company Law" on the governance structure of wholly state-owned companies, and clarify the legal procedures for profit distribution of state-owned enterprises.The key is to avoid the dereliction of duty of the relevant departments and the manipulation of the enterprise management. There should be a legal procedure for possible problems; the second solution is to interpret the law. to explain.Make a clear explanation as to whether the State-owned Assets Supervision and Administration Commission represents specific state investors of state-owned enterprises, or the state-owned enterprises as a whole. So, how can private enterprises play an important role in anti-monopoly?First, improve “entry controls”.First of all, it is necessary to distinguish what is the so-called "natural monopoly industry".What people used to call "natural monopoly industries" are actually competitive in some fields.For example, some industries are originally competitive industries, but they cannot be let go for other reasons, such as the financial industry.Second, on the issue of anti-monopoly, laws are very important.We should improve antitrust laws.Third, the unreasonable approval system must be forcibly canceled from top to bottom.In areas with relatively developed economies, some local governments have voluntarily reduced approvals. This has a positive Matthew effect, and the government allows ordinary people the opportunity to develop freely.People get rich and make money, and the government collects taxes.Fourth, anti-monopoly should be improved at the same time.Raising the level of regulation is important.For example, price control, where should be regulated, and where should not be regulated. The market system has shifted from a competitive field to a monopoly field. Compared with the industries that private enterprises have entered, public utilities are obviously an extremely huge industry.The story of the telecommunications industry tells us that introducing a market system into an industry that was originally considered a monopoly will bring about miracles!However, the closer to the "frontier", the fewer conditions the market system is applicable to, and the more obstacles it encounters, until the market fails completely.The success of the market in the telecommunications industry is that due to the technological revolution, the telecommunications industry is no longer a natural monopoly industry, it has become somewhat competitive in nature.When we go one step further, we enter the utility sector.There are two types of public utilities: one is the real natural monopoly industry, and the other is simply public goods. Speaking of "frontier", it contains the meaning of "undeveloped" and also "opportunity".Compared with the industries that private enterprises have entered, public utilities are obviously a huge and incomparable industry.The annual investment should be in the tens of trillions of yuan, and the stock will be even greater, and the service income will also be a huge figure.It is said that the return on net assets of Hong Kong-listed companies whose leading industries are public utilities in recent years is about 15.3% on average.Although in this field, the state-owned institutions with low efficiency are still the main ones, some private enterprises at home and abroad have begun to get involved in investment and investment in areas such as urban water supply, gas supply, sewage treatment, garbage disposal, roads and bridges, etc. operate.Privatization of public utilities is also an opportunity for the government.This means that in addition to financial resources, the government can attract a large amount of private funds to invest in public utilities and improve the quality of public services.Doing more with the given resources will enable the government to provide more and better services to residents, and thus achieve greater political achievements.Although my country's legal system and policies still have many problems that hinder the privatization of public utilities, once we realize the strategic significance of this trend in market reform and economic development, and adjust the policies and systems, not only private enterprises will find A vast "frontier" with a useful place, will also create new miracles that we still can't imagine.