Solicitation of comments on price monopoly regulations is about to end

[China Epoxy Network (China Epoxy Industry Online)September 6, 2009: The "Anti-Price Monopoly Regulations (Draft for Comment)" previously announced by the National Development and Reform Commission will close to the public Soliciting opinions.
In the 20 days from the beginning of the solicitation to today, major media have made a large number of comments on this document.
These comments have paid more attention to whether the regulation can be more helpful to limit unreasonable pricing in monopoly areas.
Return the people to the benefits.
The feedback was "leaning to one side" towards monopolistic industries.
Once the draft for solicitation of comments was released, feedback from all parties was active.
Concerns appeared in the opinions that were "leaning to one side": Will oil, telecommunications, railways, postal, power supply, water supply, public transport and other industries go beyond anti-price monopoly regulations and become "invulnerable" special industries? The "Worker Daily" comment pointed out that people's various worries and thinking reflect deep expectations for anti-price monopoly.
This concern is not unfounded—Article 7 of the Anti-Monopoly Law stipulates that the state-owned economy controls the industries that are related to the lifeline of the national economy and national security, as well as the industries that implement monopoly in accordance with the law, and the state shall legally operate its operators.
Activities are protected.
So some people are worried, will this "leave a back door" for monopolistic industries? And can the promulgation of the "Anti-Price Monopoly Regulations" relieve people's helplessness? The public is expecting that the prices of commodities such as water, electricity, gas, and refined oil, which are most closely related to the lives of the people, will be regulated by the law.
Anti-price monopoly requires anti-monopoly itself—whether the promulgation of the "Regulations" can be effectively implemented and really play a role in curbing monopoly is the focus of many people's concerns.
China Epoxy Industry Association ( cn) Experts said that if there is a tempting clause in the "Regulations": "Operators with a dominant market position shall not sell goods at unfairly high prices or buy goods at unfairly low prices," and consider that "unfair" The main factors for the “high price” and “unfair low price” are: “Whether the selling price is significantly higher than the cost of the product, or whether the purchase price is significantly too low, or even lower than the cost of the product.
” This clause is in reality.
The enforceability of the Chinese version is unreasonable.
In a monopolistic environment, those "product costs" that determine "unfairly high prices" or "low prices" are in fact a difficult problem to simply clarify.
According to the general principles of the market economy, the price and cost of any product is not an isolated and static concept, but is formed by constant changes in a wide range of market connections.
And what determines all of this is the core mechanism of the market economy—the mechanism of free competition.
Fair prices and clear and reasonable costs are originally the products of competition.
In the context of a monopoly where there is no or even no competition, such prices and costs are actually hard to tell. (Our reporter Zhong Huan)

Ben Wang 2007 enable the "Chinese epoxy net" new name retains "China Epoxy Resin Industry online" name
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