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Monopolies Pose Threats
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Monopolies either foreign or domestic affect market economy, says an article in Yangcheng Evening News. The following is an excerpt:

According to a report by the Ministry of Commerce, China does not face an imminent risk of foreign monopolies in any industry. Instead, most monopolies in this country are state-owned enterprises.

The report has erased speculation about foreign monopolies in China's key industries.

However, monopolies, whether foreign or state-owned, are a potential threat to the soundness of a country's economy. This is of common knowledge.

In recent years, some justified the existence of state-owned monopolies in petroleum, electricity and other industries as they guarantee the country's economic security.

Such a belief does not hold water.

When important industries are monopolized the competence of a country's economy is diminished. The lucrative profits gained through monopolies remain in their hands instead of being used to promote public welfare.

Thus, social wealth is not distributed in a fair way, widening the gap between the rich and the poor, and weakening consumer consumption.

As pointed out by the Ministry of Commerce in its latest report, the country's economic security is better protected when a market is more open.

With proper administrative supervision, domestic companies, whether state-owned or private, can be improved. And they may perform even better when foreign competitors are allowed in.

(China Daily September 12, 2007)

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