China’s High-Speed Railway Industry and Applicability of the Anti-Monopoly Law

Yu Li , Xu Zhiwei and Xu Honghai
Center for Economic Analysis of Law and Policy Evaluation, Tianjin University of Finance and Economics, Tianjin, China  
Abstract: China’s high-speed railway industry achieved dazzling development over  
the years, but not much research has been devoted to this industry from the perspective of  
competition policy. This paper focuses on the industrial organization of China’s high-speed  
railway industry and the applicability of the Anti-Monopoly Law. We intend to answer the  
following questions: (1) Why is the high-speed railway industry not an industry of natural  
monopoly? Which segments of the industry have elements of natural monopoly? (2) At  
the level of corporate organization, what is the legal and economic rationale behind the  
patterns of China’s high-speed railway undertakings evolving from government-affiliated  
enterprises to special legal person enterprises and then shareholding companies? (3) The  
applicability of the Anti-Monopoly Law to the high-speed railway industry. Our conclusions  
from the perspective of competition policy are worth referencing for similar industries such  
as electric power, telecommunications, and water and gas supply.  
Keywords: high-speed railway industry, industrial organization, special legal person  
enterprise, applicability of the Anti-Monopoly Law  
JEL Classification Codes: K21, K23, L44, L92
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