On Game Balance in Market-oriented Public Utility Reform

Since the mid-1990s, urban public utility in China has launched market-oriented reform characteristic of releasing market admission and introducing competition. Market-oriented reform of public utility, in essence, is a process of interest game. The purpose of public utility market-oriented reform is to improve interests of various stake-holders, it is a additive-sum game, of which the result is of Pareto Optimality. In this process, it is highly imperative to attach importance to protection of public interests and reasonable interests of enterprises, it is necessary for the government to view and handle correctly its own interests and strengthen research on operational law of public utility industry.