The Private Capital's Investment And Management Of The Public Utilities In China

Because of the natural monopolization of the public utilities, it used to be run by the government in the traditional system. The traditional model, that production and supplies completely controlled by the government, make the low efficiency of resource allocation and shortage of commodity. After entry the WTO, along with the development of the private capital in China, leading the private capital into the public utilities section becomes a realistic choice. This essay analyses and examines the current situation of the reform of public utilities section in our country closely, combining the practical experience that the western various countries have already carried on, in order to make a more overall understanding of the problem and challenge. How to build up good competition mechanism will be the key to the public utilities' section reform .The private capital investment request a certain repay, while the excessively high price will injure the public consumers' interests. Thus price problem also remains to be solved.The public utilities section needs to carry out widespread service to a certain degree. How at guarantee the widespread service after leading the civil capital into public utility section is also an urgent problem. After leading the private fund into the public utilities section, the government should adopt the valid regulation system, thus achieving the real goal. This is also a new topic.Concerning the problems mentioned above, this essay put forward the related policy suggestion in order to promote our country private capital investment in public utilities section.