A Research On The Risk Identification And Avoidance Of Natural Monopoly Industries To Introduce Private Capital

Based on the reform in China's natural monopoly industries which breaks the monopoly of state-owned enterprises and promotes the competition, this paper studies the risk under China's natural monopoly industries introduce private capital, and to explore new ideas and new direction to avoid such risks. It has some reference value about the risk prevention and control systems that the natural monopoly industries introduce private capital, so as the formulation of macroeconomic policies.The content of this paper includes four chapters. Chapter one from the beginning of the theoretical evolution of natural monopoly, introduces the basis theory of the natural monopoly industries to introduce private capital; Chapter two analysis the status of China's natural monopoly industries to introduce private capital; Chapter three focuses on the position,causes,forms and impacts of potential risks of the natural monopoly industries to introduce private capital; Chapter four takes some targeted recommendations about how to avoid the risk of the natural monopoly industries to introduce private capital.This paper holds that it is important to accurately identify and effectively circumvent about the potential risks of the natural monopoly industries to introduce private capital, by this ways can natural monopoly industries get sustainable development. But China's current reality of the situation is focused on the natural monopoly industries with the introduction of private capital, neglect the potential risks in this process. It may highlight the risks, and have negative impacts of sustainable development of natural monopoly industries and the improvement of social welfare, ultimately would be contrary to the reform expectations of the natural monopoly industry.Therefore, we should learn from developed countries, learn their experience on the prevention of such risks, and to link up with China's specific national conditions, innovate the institutional arrangements of the monopoly industries to introduce private capital and avoid such risks effectively.The innovation of this paper is that systematically display the process of theory evolution of natural monopoly industry to introduce private capital, under the basis of it, this paper analysis the risk of natural monopoly industry to introduce private capital, try to establish a control system which can balance various risks, and based on the enhanced efficiency, it would be controlled the degree which we can accept, so as a new competition-oriented and then have a characteristics of natural monopoly industries.