Monopolies & Oligopoly industries in China

In China, many of the traditional industries have being monopolies by Chinese government. Such industries like, telecommunication, bus, railroad, gasoline, electricity, hospital, etc. The Price Law enacted in 1997 explicitly allows the government to control prices in certain important sectors, including natural resources, sectors characterized by natural monopolies, and public utilities. While the number of controlled prices seems small, the significance of price control in China nowadays is definitely greater than that number would suggest.




Although,  the Chinese government is monopolizing many traditional industries. An Internet oligopoly is forming among Chinese Internet enterprises, with Baidu Inc, Tencent Holdings, Ltd, and Alibaba Holding Group, Ltd, taking up 70 percent of the total market value of all listed Internet companies in China. The three Internet giants hold stable monopolized positions in the sectors of search engines, instant messaging and e-commerce. Tencent took up 76.56 percent of the market share of instant messaging, with 636.6 million active accounts. Baidu took 72.3 percent of the market shares of search engines, while Alibaba took up 54.39 percent of the Business to Business(B2B) business. The monopolizing also makes many American communication companies is hard to enter the Chinese market, even if there is no block from the Chinese government.