(China Daily)
Updated: 2007-11-27 10:19

The administrative barriers among different regions should be eliminated as soon as possible to boost economic growth in all parts of the country, says an editorial in Beijing Youth Daily. The following is an excerpt:

The provincial reform and development commission in Hubei said it is working with other departments of the province to review local regulations to eliminate the protective treatment of local companies and to stop discriminating against companies from places other than the province.

It is the common practice of local governments to offer favorable policies - taxation and bank credits - to support local businesses in their competition with those from other cities or provinces.

In some places, the products and services supplied by businesses not from the region are charged higher fees or required to observe tougher standards of quality control. There are also cases of construction companies from other regions not invited or allowed to bid for local projects.

Such practices hinder fair competition in the market, and impose administrative barriers that dampen the economy. They harm the interests of consumers, and obstruct the upgrading of the economic structure.

The existence of these administrative barriers stem from inadequate knowledge of the market economy, insufficient awareness of market rules, and, in some cases, the over-enthusiasm of local officials to develop their economy.

For years, the central government has been working to break these administrative barriers so that product essentials gain free market flow.

Fortunately, the State's efforts are being followed by some local governments. Hubei is a good example. It is trying to eliminate administrative barriers that separate the province from other parts of the country.