China’s Liaoning Moves to Curb Administrative Distortions in Local Markets

China’s Liaoning Moves to Curb Administrative Distortions in Local Markets
Photo: unsplash.com 17.04.2026 500

Liaoning Province has launched a six-month review of local regulations to remove barriers to fair competition and strengthen market-based reforms amid broader efforts to deepen pro-business governance.

Liaoning Province has launched a six-month campaign to review local regulations and remove barriers to building a unified national market in China. The effort targets provisions that are outdated or inconsistent.

The review will focus on provisions that restrict fair competition, reinforce local protectionism or treat private businesses unequally, as well as those that have become obsolete or been superseded, according to an article on the Justice Ministry's official WeChat account Thursday.

The campaign coincides with a bylined article published in the Communist Party’s flagship journal Qiushi by Liaoning Party chief Xu Kunlin, who outlined the province’s pro-business reform efforts while acknowledging persistent governance challenges.

Xu framed the issue in terms of market access, saying it is the starting point for competition and that barriers or hidden restrictions at the entry stage can prevent fair competition from taking hold, calling for stronger action against improper intervention in key sectors.

He said some authorities rely on land concessions and tax incentives to attract investment rather than market-based mechanisms, reflecting a short-term approach.

Xu also cited rent-seeking in administrative approvals and government failures to honor payment obligations, warning that such practices continue to affect business confidence and the functioning of the market.

He flagged problems in enforcement and judicial practices, including selective and campaign-style enforcement, overlapping inspections and weak case handling, saying these issues continue to burden businesses and undermine legal certainty and trust in the system.

Recent measures suggest Liaoning is strengthening its competition governance toolkit, as reforms deepen and efforts to revitalize northeast China gather pace.

It has taken on an expanded role in merger reviews as China decentralizes parts of its merger-control system.

The province has also introduced artificial intelligence tools in government procurement to identify bid-rigging risks and reduce room for “human manipulation,” part of efforts to promote fairer competition.

Source: MLex

China 

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