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China: NDRC to end salt monopoly

 |  November 12, 2014

After years of talk, China’s National Development and Reform Commission announced plans to open up the nation’s salt industry and end the monopoly of China Salt.

According to reports, the plan will be implemented by 2016. Under the current market structure, a variety of small- and medium-sized private salt producers are all forced to abide by China Salt rules. Reports say those producers have been forced to accept financial losses as China Salt moved to increase its own profits.

The system leads to various forms of collusion, including bribery, reports say, and a lack of industry innovation.

China Salt is also accused of artificially hiking prices.

These business practices have come under fire since the implementation of China’s Anti-Monopoly Law in 2008.

Full content: The Diplomat

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