Sam Engutsamy, January 20 2010.
Having been operational for over 2000 years, China’s monopoly on the sale and production of salt appears to be drawing to an end.
The National Development and Reform Commission (“NDRC”) are looking to submit proposals to the State Council to bring a conclusion to the two thousand year old monopolistic practice. The salt monopoly grew from the need to raise revenue from taxes, and to tackle the iodine deficiency in the populace’s diet within certain areas of China.
China National Salt Industry Corporation, the largest producer and seller of salt for the last sixty years, has functioned as regulator under the NDRC’s supervision.
Post AML enactment, there were concerns that the state owned enterprises (“SOEs”) provision found under Article 7, would allow SOEs to be exempt from the AML. This consequently led to concerns that the AML may, during its enforcement, be based upon a policy of protectionism. If the NDRC’s proposals are approved by the State Council, it would endorse the AML’s important, and equality, whilst at the same time set to rest any stakeholder worries. Additionally, such a move can only benefit China, as it continues in implementing a market economy.