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Harms associated with monopolized industries

The essence of market economy lies in freedom, equality and equal exchange. In order to realize their economic rights under the conditions of a market economy, market players must first have the right to freedom of economic activity. If there is no economic freedom, the market subject will not be able to make economic decisions and engage in transactions independently. Therefore, economic freedom is the most basic requirement for individual economic rights in a market economy, and is at the very core of individual economic rights. Economic freedom is a state in which economic activities, including investment, employment and consumption, are not coerced by others. And administrative monopoly may constitute a restriction on all economic freedom, especially reflected in the infringement of the freedom of operation and consumer freedom.

Freedom of operation embodies the space for individuals and groups to develop in the economic sphere, and is an indispensable factor in promoting the economic development of modern society. The Republic of China's constitutional scholar Zhang Zhiben once said, "If the business is not free, the individual can not develop their own financial resources, in order to carry out their transactions on the free competition, is bound to make the industry and commerce without significant progress." Freedom of operation is the most basic rights of market players, what to produce, how much to produce, when to enter, when to exit, to whom to sell, where to sell, the price of geometric and so on, should be the enterprise's own thing. However, under the condition of administrative monopoly, through the setting of licenses or approvals, through the blockade and division of the market, infringing on the freedom of operation of the market players, in particular, infringing on their right to enter the market, the right to exit the market and the right to sell goods.

"The freedom of the consumer ...... is a fundamental right that no one may violate." Violating that freedom "should be considered an anti-social outrage." Consumers' right to independent choice exists on the basis of consumers' right to freedom of consumption, which allows consumers to choose to decide whether to buy or accept goods or services provided by operators according to their own wishes in the process of purchasing and using goods or receiving services. Specifically, this includes the right to independently choose goods and services, the right to independently choose the object of the transaction, the right to compare and identify and select goods or services, and the right to choose to make a decision. Therefore administrative monopoly by forcing consumers to buy certain products or services and having to pay excessive prices, i.e., infringing on the consumer's right to freedom and independent choice. (I) disregard for the principle of equal protection

China's current Constitution, Article 33, paragraph 2, provides that "the Chinese people *** and the citizens of the State are equal before the law". In recent constitutional norms, this has been expressed as "equality before the law" or "equality of persons before the law". The ultimate significance of the principle of equal protection lies in the pursuit of the equality of opportunity guaranteed by the Constitution to each individual in the formation and realization of his or her personality. It is called "equality of opportunity".

While the market and equality are naturally linked, administrative monopoly gives privileges to certain industries, enterprises and individuals, making the government, as well as industries and individuals inextricably linked with the government, have privileges over other competitors in the market competition. For example, there are currently "no-go zones" for private capital investment in varying degrees in some 30 industries and fields, particularly in infrastructure, large-scale manufacturing, finance and insurance, communications, science, education, culture, health, tourism and other industries, as well as in areas such as transactions in State-owned property rights. Too much by the administrative mechanism to monopolize the resources that should be allocated by the market, the implementation of preferential treatment for specific operators, in violation of the principle of equal protection, constitutes discrimination against competitors, resulting in the consequences of restricting competition.

(ii) Violation of the Principle of Legal Reservation

Restrictions on economic freedom should be in line with the requirements of the principle of legal reservation. The implication of the principle of reservation of laws is that only a representative body democratically elected with direct democratic legitimacy can make decisions on important matters of a general nature that are closely related to the people and promulgate universal norms of behavior that are binding on citizens. Article 5, paragraph 1, of the Constitution of China also stipulates that "the State shall be governed by law and a socialist State based on the rule of law shall be built". The principle of a State governed by the rule of law requires that the legal relations between the State and the people be regulated by law and that the people be able to foresee and estimate the effects of administrative activities. Examining the doctrine, administrative provisions and measures other than laws shall not restrict the fundamental rights of citizens.

In China, administrative monopolies are often based on regulations, normative documents, policy guidelines, minutes of meetings and other normative forms of provisions. For example, in 2000, the government of Longjiang County in Heilongjiang Province, on the grounds of rectifying the order of the beer market, established the Longjiang County Beer Market Inspection Team led by the Liquor Monopoly Bureau on the basis of the Liquor Management Regulations promulgated by the Qiqihar Municipal People's Congress and the document (2000) No. 33, "Circular of the Office of the People's Government of Qiqihar Municipality on the Rectification of Alcoholic Beer Market" issued by the General Office of Qiqihar Municipal Government. "Longjiang Beer" to be taken care of, the foreign beer enterprises to be suppressed. Another example is that in September 2000, the Hebei Provincial Government issued the Hebei Provincial Postal Management Regulations, which stipulates that the subscription and distribution of postal newspapers and magazines shall be monopolized by postal enterprises. It directly targeted the Sunshine Newspaper Service Co., Ltd. established in 1999, forcing Sunshine to stop subscribing to postal newspapers and magazines. Local governments or their departments often set up administrative licenses indiscriminately through normative documents, engaging in sectoral division and local blockades. Administrative monopolization based on these documents, which do not have the effect of legal norms in form and lack rational concerns in substance, is in conflict with the principle of reservation of laws.

(C) Damage to the order of fair competition

Maintaining the order of fair competition is an effective means of realizing the objectives of economic policy such as effective allocation of resources, efficient development of the economy, advancement of technology, promotion of economic growth and stabilization of prices. It is also a means by which to bring into play the regulatory role of the market as far as possible, to decentralize private economic power while discouraging the arbitrary expansion of political power, and to achieve a democratic economic order by ensuring freedom of choice for consumers and equal opportunity and freedom for enterprises. The core purpose of antitrust and competition laws is therefore to defend the fair competitive order of the market. For example, Article 1 of Japan's Prohibition of Monopoly Act clearly states, "The purpose of this Act is ...... to promote fair and free competition."

The many administrative monopolies in practice are expressed in the form of direct exclusion and restriction of competition. Examined from the micro level, administrative monopoly often changes the position of competitors in a particular market by directly prohibiting a product or a product from a particular place from entering a particular product market or geographical market, resulting in the emergence of unfair competition and monopoly situation. From a macro perspective, administrative monopoly impairs the order of fair competition, divides the national market, which should be unified and open, into a block structure that is closed to each other and has no connection with each other, impedes the formation of a national open and unified market, and hinders the process of establishing and improving the socialist market competition mechanism.