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Cope with the Challenge of SOEs’ Clause in TPP Agreement with the Principle of Competitive Neutrality(No.50, 2016)


By Xiang Anbo, Enterprise Research Institute, DRC

Research report No.50, 2016 (Total 4933) 2016-4-15

Abstract: On the enterprise level, the SOEs’ (state-owned enterprises) clause in TPP Agreement (Trans-Pacific Partnership Agreement)intensively reflects the United States’ strategic intent of reconstructing competitive advantage and interest pattern, i.e. to manifest the power of transnational corporations (TNCs) and to confine the competitive advantage of SOEs. Its core concept is not "competitive neutrality", but "competitive restriction" on SOEs to some extent. We should not only recognize the unreasonable parts of TPP’s SOEs’ clause, but also use the positive contents of "competitive neutrality" as reference and weaken the color of ownership. Internally, we should push for substantive SOEs’ reform and create conditions to ensure fair competition among all kinds of enterprises. Externally, we should strive for a favorable environment for the development of SOEs. If we could truly take the reform approach of "giving priority to capital-management", "actively developing mixed ownership economy", putting more emphasis on state-owned capital and further developing mixed ownership enterprises, the pressure resulting from TPP’s SOEs’ clause will, to a great extent, be neutralized imperceptibly.

Key words: TPP, SOEs, competitive neutrality