Li Rongrong (Sina Technology Picture) - Today, Chang Xiaobing, Chairman of China Unicom (Weibo) and a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), sat together with Li Rongrong. Li Rongrong, the former head of the State-owned Assets Supervision and Administration Commission (SASAC), joined the CPPCC last year as a new member. The economic group 36 they are in often discusses topics related to monopolies, especially since Li Rongrong joined.
Chang and Li occasionally whisper to each other. In fact, the latter's tenure at SASAC makes him particularly notable in this group. Many private enterprise owners' complaints want to be heard by SASAC, the "grandmother" of state-owned enterprises - at least they want to have a few words with this former head.
During the afternoon discussion, Chang Xiaobing and Li Rongrong were separated. A committee member directly approached Chang, who was sitting beside Li, and said: Excuse me, you're in my seat.
For committee member Chang Xiaobing, one of the most troublesome events last year should include: On November 9, the National Development and Reform Commission (NDRC) announced an investigation into allegations that China Telecom (Weibo) and China Unicom were involved in broadband access monopoly issues.
This was the first anti-monopoly case involving central state-owned enterprises investigated by the NDRC since the Anti-Monopoly Law took effect in 2008. At the time, some comments stated: An important department in China has taken action against a long-criticized monopolistic industry, indicating an acceleration in our country's anti-monopoly efforts.
Professor Li Shuguang of China University of Political Science and Law stated that this action at least shows monopolistic enterprises that the Anti-Monopoly Law is not just a paper tiger.
The NDRC's investigation into China Telecom and China Unicom mainly focuses on whether the two companies, in the broadband access and inter-network settlement fields, use their market dominance to obstruct and affect other operators from entering the market.
Today, Chang Xiaobing frankly told the Youth Daily reporter that after the NDRC issued the investigation order, China Unicom actively rectified the situation. Although there are differing views between Unicom and the NDRC regarding whether or not it involves a monopoly, Unicom still carried out the required rectifications, such as further standardizing broadband access and accelerating the enhancement of network facility capabilities.
"Since we've been investigated, it shows there are areas where we haven't fully met expectations. With such a large enterprise and such extensive services, no one dares to say there are no problems," said Chang Xiaobing.
Recently, there have been reports that the major giants in the telecommunications industry have committed to further increasing internet speed, allowing consumers to enjoy the services they deserve. This is also seen by the industry as a service improvement made by monopolistic industries after the NDRC "flagged" Unicom and Telecom.
In fact, the NDRC's anti-price monopoly work began to accelerate last year. The most significant change was in the middle of last year when the Price Supervision and Inspection Department of the NDRC was renamed as the Price Supervision and Inspection and Anti-Monopoly Bureau. The investigation into Unicom and Telecom was the first case publicly handled by this new department.
A recent news report again highlighted the presence of this bureau. Just before the convening of the Two Sessions, a department proposed to issue regulations stating that discounted movie ticket prices should not be less than 70% off. It is reported that the Anti-Monopoly Bureau of the NDRC responded within a few days, understanding the situation from relevant departments.
Besides this bureau, there are two other anti-monopoly enforcement agencies in China: the Anti-Monopoly Bureau of the Ministry of Commerce and the Anti-Monopoly and Anti-Unfair Competition Enforcement Bureau of the State Administration for Industry and Commerce.
The main responsibilities of these three agencies differ: the NDRC is responsible for investigating price monopoly behaviors according to law; the Ministry of Commerce is responsible for reviewing enterprises for anti-monopoly; the State Administration for Industry and Commerce is responsible for investigating monopoly agreements and abuses of market dominance.
The establishment of laws and institutions means that anti-monopoly work is accelerating. However, during this year's National People's Congress and CPPCC sessions, representatives and committee members still expressed more expectations for anti-monopoly work.
Committee member Chi Fulin proposed that anti-monopoly work being scattered across three departments makes it difficult to form a united force. Additionally, as government departments responsible for anti-monopoly, the NDRC and others have intricate ties with monopolistic enterprises. The best institutional design would be for the anti-monopoly department to be relatively independent, having fewer connections with enterprises.
There are also suggestions that besides administrative departments handling anti-monopoly cases, judicial-level anti-monopoly efforts should also be strengthened. Committee member Duan Qihua, a lawyer, recently stated that he will submit a proposal suggesting improvements to the anti-monopoly judicial system.
Regarding the NDRC's investigation into China Unicom, committee member Li Rongrong did not elaborate much. He said that the public's dissatisfaction with monopolistic enterprises is not a bad thing, as public opinions can promote enterprise improvements. However, he also indicated that enterprises should be evaluated correctly, whether they are private or state-owned enterprises, the public's criticism should aim to promote their improvement rather than simply criticizing them.
"Simply criticizing cannot solve problems," said Li Rongrong.
This report was filed in Beijing on March 4th.
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