Let rule of law guide the market

Government departments and social organizations should enhance supervision with legal means to ensure healthy operations

The next five years are key for China to establish a market economy with rule of law. Market economy ruled by law guarantees that the market plays a decisive role in the distribution of resources and that the government functions well. It requires the authorities accelerate the transformation from administration-oriented market supervision to market supervision based on the rule of law, and at the same time deepen reform of the administrative examination and approval system.

Currently the domestic consumer market environment does not fulfill the requirement of releasing consumption demand. The scale of China's overall consumption by 2020 should be about 45 to 50 trillion yuan ($7.2 to 8 trillion), so it can be the main pillar of 7 percent GDP growth. Government market supervision has become the key factor influencing the overall situation of economic transformation and growth. The supervision of consumer goods such as food or of monopoly industries shows that it is hard to achieve effective market supervision without change to the supervision system that is centered on administrative supervision.