Research on Improving the Regulatory System and Mechanism for Natural Monopoly Industries
The Third Plenary Session of the 20th Central Committee of the Communist Party of China proposed to“promote market-oriented reforms in competitive operations within natural monopoly sectors such as energy, railways, telecommunications, and public utilities, expand market access for competitive operations, introduce more market competition mechanisms, and strengthen oversight over natural monopoly industries.” In response, this research examines the theoretical and practical challenges in regulating the operational scope of enterprises within natural monopoly sectors. We distill common regulatory principles and rules across various natural monopoly industries to provide a comprehensive theoretical foundation for regulating their operational boundaries. Additionally, the research offers recommendations on the structural and functional mechanisms of regulatory frameworks, with the goal of ensuring the effective execution of responsibilities among stakeholders. These efforts aim to promote the healthy development of natural monopoly industries and optimize the structure of the state-owned economy.
