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Policy Options on the Structural Reform of Table Salt Monopoly(No.61, 2018)


By Xiang Anbo, Enterprise Research Institute, DRC & Mei Xiong, Peking University

Research Report No.61, 2018 (Total 5336) 2018-4-3

Abstract: This round of structural reform of the salt industry has achieved substantial results in the market-oriented reform. The goal of “ensuring the safety of table salt and releasing market vitality” has basically been attained, but further efforts need to be made to achieve the target of “promoting fair competition”. The key is to improve the salt-related laws and regulations in time and step up the separation of government administration from the management of enterprises. These are the two major tasks in implementing the structural reform of table salt monopoly. Only by fulfilling these tasks can we consolidate the reform results and better enjoy the benefits of the reform. Efforts need to be made to step up efforts to clean up and revise local laws and regulations at all levels that are inconsistent with the principles of the salt reform and the revised Measures on Table Salt Monopoly so as to clear up the barriers on the way of reform and eliminate the loopholes for improper enforcement. Besides, we need to step up the separation of government administration from enterprise management, weaken the self-interest incentives of selective enforcement by law enforcement entities and support and assist more salt companies to make reform and positive transformation in order to lay a solid micro-foundation for the reform.

Key words: salt industry, monopoly, structural reform