SOEs Governance Under The Perspective Of Competitive Neutrality System

Competitive neutrality,as a special concept,originated in the reform of state-owned enterprises(SOEs)in Australia in the 1990s.Its purpose was to eliminate the competitive advantage that Australian SOEs did not obtain from private companies in their business activities because of their ownership background.competitive neutrality has a great deal with the governance of SOEs.As competitive neutrality gradually evolves into international economic and trade rules,monopoly privileges enjoyed by SOEs in China and corporate governance that lacks norms are increasingly criticized by the international community.Apart from the introduction,this article is divided into four parts.The first part mainly elaborates the emergence and development of competitive neutrality and related theories.First of all,Australia,and the Organization for Economic Cooperation and Development(OECD)have a different focus on the definition of competitive neutrality.However,in the light of the reality of the reform of SOEs in our country,competitive neutrality means that the government should maintain neutrality in the commercial activities of state-owned and private enterprises.After that,the relationship between competitive neutrality and government intervention,market economy,reform of SOEs,and Antitrust Law was defined.The conflict between competitive neutrality rules and the development model of China’s SOEs lies in the fact that the net competitive advantage possessed by SOEs has caused monopoly in many industries.Private companies and foreign companies have almost no access to these industries,limiting the market economy to full freedom of competition.The second part first clarified the legal sources of competitive neutrality.The competitive neutrality system originated in Australian domestic law and rapidly developed into a new generation of international economic and trade rules.It is in line with the universality rules such as the WTO Agreements and the EU Law,and the OECD and other international organizations have in-depth research.Many reports of them have produced a considerable amount of significant international soft law.Secondly,focusing on Australia and OECD,they discussed the practice of their competitive neutrality system.The third part analyzes the legislative practice and problems of the SOEs’competition rules in China.China’s legislation embodying the spirit of a competitive neutrality is mainly embodied in Anti-monopoly Law.It also includes the ConstitutionLaw as a guide,the Civil Law,Company Law and Property Law are the contents aimed at establishing clear property rights and separation of government and enterprises.Since the establishment of a market economy system in the 1990s,the reform of SOEs has been in existence for nearly 30 years.However,there are still many problems.First,the unfair supervision of public power has caused the monopoly of SOEs in many industries,and secondly,the SOEs.The reforms have not yet been completed.The fourth part mainly concerns the inspiration of the competitive neutrality system to the reform of SOEs in China.First,the principles of classified governance should be adopted.SOEs with public welfare and commercial SOEs should be separately regulated.Secondly,the government should carefully intervene in the market and change government functions so as to avoid distorted competition due to non-neutral intervention.Third,the monopoly of SOEs should be restricted.Finally,improve the corporate governance structure of SOEs and cut off the links between SOEs and the government in business activities.