Research On The Privatization Of Public Utility In China

The Privatization of public utility is a tidal current all over the world. Along with the development of science and technology and expansion of social arrangement, natural monopolization is weakened , at the same time ,new competitive fields is created. the private enterprises obtain opportunity. In some countries, basic establishment and public service is monopolized by public departments, but the effect is not so well. For the sake of effectively collocating public resources and capabilities, the private enterprises are allowed to enter the fields of public utility in some countries.In china, the Privatization of public utility is derived from the conflict between supply and demand itself. After reformation and opening, society and economy are developing rapidly, the public utility is enormously demanded. Quondam basic establishment and public service can't satisfy huge marketable demands, and the government can't afford new investment and build. That means private capital can exist in the field of public utility.For the private investor, entering the fields of public utility means tremendous profits. That public utility is not good for gaining profits is a conventional idea, the private enterprises can't and want not to manage public utility. In fact, public utility has few risk, profits is steady and market is wide. With going deep into the reform , the privatization of public utility in china is a current.