Building a Unified National Market through Centralized Industry Policy
Industry policies dominated by local governments have intensified market barriers and local protectionism in the form of"administrative region economies",severely hindering the construction of a unified national market.There is an urgent need to advance the unified national market by adopting centralized industry policies led by the central government.The key focus areas include reducing market transaction costs on the production side by alleviating barriers in factor markets and intermediate goods markets and reducing transaction costs on the consumption side by addressing market segmentation for goods.Centralized industry policy aims to foster a unified national market by promoting the free flow of factors and fair competition,eliminating various local government practices of creating"small self-contained cycles"with their policies.This approach should leverage the unifying role of centralized industry policy to mitigate the fragmenting effects of local industry policies and actively facilitate communication among local governments.Additionally,implementing the regional coordinated development strategy should serve as a driver for constructing a unified national market.
industry policycentrallocalunified national market
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