Research On The Fair Competition Review System

The relationship between the government and the market is a problem that must be dealt with correctly by all market economy countries especially for China,because our country is in the key period of deepening economic system reform.How to make the government behavior serve the market economy under the premise of respecting the basic rules of the market is the most important issue in our country at this stage.The State Council of China issued Opinions on Establishing the Fair Competition Review System in the Development of Market System(hereinafter “Opinions”)to establish the Fair Competition Review System across the country the first time to regulate the government intervention in June,2016.The Opinions not only prevents the formulation of the new policies that may have the effect of eliminating or restricting competition,but also sorts out and abolishes the policies and regulations in operation that are likely to affect market competition.The Fair Competition Review System is the key measure of deepening economic system reform in China and is also one vital solution to establish the basic position of competition policy gradually.From the experience of the world’s advanced jurisdictions,OECD set up the Competition Assessment first and also issued the increasingly excellent Competition Assessment Toolkit specifically which clarified the scope,the method and the process,so as to provide all countries with reference for the construction of the corresponding systems.Many countries such as the UK,Australia,South Korea,Spain,and Japan required government organizations or institutions to assess the proposed and the implemented policies.Continually,they realized the development of economy in a healthy and rapid way.The European State Aids Control System was also established to ensure that government intervention in the market didn’t distort competition and didn’t affect the free trade among European.The Treaty on the Functioning of the European Union prescribes the standards,the exemptions,the review procedure,the legal liabilities and the relief measures for illegal state aids.These systems similar to ours have been very mature.To investigate Fair Competition Review System just set up,at the national level,there are only two normative documents which doesn’t detail the contents,the objects and the methods of review and even leaves a blank in the process of review.At the local level,while there are more than 20 provinces including Guangdong,Jiangsu,Hunan have released their respective implementation opinions within its own administrative area,there is no other major innovation besides the establishment of a joint meeting overall and they all wait to formulate local versions following the national implementation details.The Opinions stipulates that all provinces should push away and guide the the municipal and the county-level governments and their subordinate departments to carry out the Fair Competition Review gradually.Therefore,it is urgent to design a national procedure for the Fair Competition Review System.This paper includes six parts:In the introduction,this paper argues that the government intervention in the market is necessary because of the failure of the market.But the government’s intervention in the economy may in turn exclude or restrict competition in the market improperly.On the basis of learning from the advanced judicial competition assessment,we must establish the feasible supporting rules for Fair Competition Review System.The first chapter introduces the basic theory of the Fair Competition Reviews System,including it’s historical evolution,concept,the economic and institutional value.The second chapter elaborates the current situation of Fair Competition Review System,including the results at this stage and some imperfections.From two aspects of entity and procedure,the shortcomings of Fair Competition Review system are ambiguity about the review object,the imperfection of the review standard,the rationality,feasibility and deficiency of the review mode the vagueness of review effect and the absence of review procedure.The third chapter perfects the four substantial aspects: the review object,the review standard,the review mode and the review effect,which are mentioned in the second section of the second chapter.The fourth chapter perfects the procedure and designs the review steps.This paper holds that the establishment and implementation of Fair Competition Review System should be promoted and perfected step by step.The review object should include all the policies and measures proposed and in operation which have the legal effect.The review standards should contain the restrictions on consumer access to information and choice.The current implementation of the internal review is of a certain degree of rationality and feasibility,but to take a reasonable mechanism of supervision and prevention and control measures to ensure that it can really play a role.On the effectiveness of the review,the review results should be given enforcement power.In addition,there are six steps in the review process.