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.
(China Daily November 27, 2007)