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A bad idea that is not funny

chinadaily.com.cn | Updated: 2013-06-13 22:05

A government department in Anhui province issued an instruction that requires State-owned enterprises to buy products from each other. This is a bad, absurd idea, says an article in the Economic Observer (excerpts below).

There are already countless jokes about bureaucrats but more are in store.

A recent instruction by the Anhui provincial government could well raise a few laughs. Facing economic difficulties, the department in charge of State properties instructed SOEs under its supervision to buy products from each other.

We can understand their concern – the officials are trying to boost SOE profits. However, such interference sets market barriers against enterprises outside the province and local private-owned enterprises. This will damage the market.

The department has also broken the law. China's Anti-Monopoly Law clearly prohibits government departments to force any individual or company to buy special products.

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