China Will Start Easing Its 2,000-Year-Old Salt Monopoly

Country's monopoly on salt predates the Great Wall
By Newser Editors and Wire Services
Posted Jan 4, 2017 5:55 PM CST
In this Aug. 13, 2011 photo, migrant workers shovel raw salt at the Qijiaojing Salt Field in Hami in northwest China's Xinjiang Uygur Autonomous Region.   (Uncredited)
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(Newser) – China has started an overhaul of its salt industry, easing a monopoly that has existed in some form for more than 2,000 years and predates the Great Wall, the AP reports. New regulations went into effect at the start of this year. Under a plan published by China's State Council last year, government regulators will allow private companies to enter the salt market. Existing wholesalers will be allowed to operate outside their previously designated areas, run marketing campaigns, and introduce "modern ways of distribution." Government planners will retain supervision over retail pricing to "prevent abnormal fluctuations," but prices will otherwise be set by the market, according to the State Council.

Dynasties dating back more than 2,000 years have tightly controlled how salt is manufactured and sold. Under Communist Party rule, government planners and salt manufacturers have worked hand in hand to set production targets and prices, with a special police force sniffing out and shutting down private producers. But China has pledged in recent years to open up its economy to more private and foreign competition and make government-run companies more competitive. Its handling of salt could be a test of those promises. Store managers and observers of the market told state media that they are hopeful that salt prices will soon fall and that new salt products will arrive on shelves. (Read more salt stories.)

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