The Implementation of China’s Fair Competition Review System: A SWOT Analysis of Shanxi Province in China

Shuping Lyu; Leina Wang

doi:10.6981/FEM.202606_7(6).0008

Authors

Shuping Lyu
Leina Wang

DOI:

https://doi.org/10.6981/FEM.202606_7(6).0008

Keywords:

Fair Competition Review System; Resource-based Regions; Business Environment; SWOT Analysis.

Abstract

The Fair Competition Review System constitutes a key measure for deepening the reform of the market economic system and constructing a unified national market. As a typical resource-based region, Shanxi Province has long been confronted with multiple challenges, including a single industrial structure and administrative intervention. During the critical period of energy transition, the province is in urgent need of relying on the Fair Competition Review System to dismantle policy barriers and boost the endogenous driving force of the market. This study systematically reviews the progress achieved since the implementation of Shanxi Province’s Fair Competition Review System in January 2017. By integrating characteristic local review cases and policy cleanup data, it summarizes the effectiveness and innovative practices in the comprehensive coverage of the system and the enforcement of reviews. On this basis, employing the SWOT analysis method, the study conducts an in-depth analysis of the internal strengths and weaknesses, as well as external opportunities and threats, inherent in Shanxi’s implementation of the system. Targeted optimization strategies are proposed in four dimensions: deepening precise policy alignment by leveraging top-level design and digital economy dividends; addressing the fragmentation in review enforcement through capacity building and regional coordination; curbing regional policy games via rigid institutional constraints; and mitigating external economic fluctuations through industrial risk early warning and third-party evaluation. The research findings could provide theoretical references and practical pathways for Shanxi Province and other similar resource-based regions nationwide to curb administrative monopolies, optimize the business environment, and advance the construction of a unified national market against the backdrop of the Carbon Peak and Carbon Neutrality goals.

Downloads

Download data is not yet available.

References

[1] Qi, Y. D., & Hao, Y. (2022). Promoting the construction of a unified national market through the fair competition review system. Southern Economy, (8), 10–21. (in Chinese)

[2] Wang, X. L. (2025). Rigid constraints and positive incentives of fair competition review under the context of building a unified national market. Jurist, (3), 1–13, 191. (in Chinese)

[3] Du, L. Z., Xu, N., Chu, J. M., et al. (2023). Administrative monopoly regulation and enterprise investment level: A quasi-natural experiment based on the fair competition review system. Economic Issues, (5), 59–69. (in Chinese)

[4] Shi, B., & Guo, S. Q. (2025). Fair competition review, new quality productive forces, and digital transformation of enterprises. Economic Issues, (1), 1–14. (in Chinese)

[5] Lyu, S., Buts, C., & Jegers, M. (2022). China’s fair competition review system: A single case study. World Competition, 45(1), 123–156.

[6] Lyu, S., Buts, C., & Jegers, M. (2019). Comparing China’s fair competition review system to EU state aid control. European State Aid Law Quarterly, 18(1), 37–60.

[7] Pu, Y. Y. (2024). Research on the local implementation mechanism of fair competition review under the background of optimizing the business environment. China Price Regulation and Anti-Monopoly, (10), 32–35. (in Chinese)

[8] Chen, C. Q. (2023). Innovation exploration and path optimization of the fair competition review system in China’s free trade zones (ports). Journal of Xiangtan University (Philosophy and Social Sciences), 47(3), 89–95. (in Chinese)

[9] Ma, X. Y. (2024). Investigation and research on the fair competition review system in the Yangtze River Delta region under the background of building a unified national market. China Price Regulation and Anti-Monopoly, (12), 16–17. (in Chinese)

[10] Tang, J. (2020). Exploration of fair competition review mechanism under the rule of law business environment: Taking Sichuan practice as an example. Legal System and Society, (28), 63–64. (in Chinese)

[11] Ge, X., & Wang, L. J. (2021). Thoughts on local implementation of the fair competition review system under the dual circulation background: Taking Gansu practice as an example. Shanghai Business, (5), 121–125. (in Chinese)

[12] Xu, F. L., & Liu, X. (2022). Strengthening fair competition policy implementation to promote the construction of a unified national market: Taking Anhui practice as an example. China Market Regulation Research, (10), 62–65. (in Chinese)

[13] Li, D. W., Guo, X. L., & A-Cheng·Adelibieke. (2024). Dilemma examination and solution paths for the implementation of the fair competition review system in the Xinjiang free trade zone. Modern Marketing, (36), 106–109. (in Chinese)

[14] Qin, H. F. (2022, January 25). Shanxi: Vigorously promoting business environment construction. China Quality Daily, p. 3. (in Chinese)

[15] Ma, Y. L. (2025, February 13). Provincial finance department assists in building a rule of law business environment. Shanxi Economic Daily, p. 1. (in Chinese)

[16] Miao, P. L. (2025). Research on the mechanism and path of embedding the record review system into fair competition review. Journal of Henan University (Social Sciences), 65(5), 51–60, 153–154. (in Chinese)

[17] Sun, J., & Cai, Q. M. (2023). Implementation guarantee mechanism of the fair competition review system. Study and Practice, (10), 51–59, 2. (in Chinese)

[18] Lu, L., & Liu, H. Y. (2018). On regulating the anomalies of local government competition in China. Theoretical Investigation, (3), 95–101. (in Chinese)

[19] Ni, F., & Lu, X. H. (2022). Research on improving China’s third-party evaluation system for fair competition review. China Market Regulation Research, (10), 66–70. (in Chinese)

[20] Meng, Y. B. (2024). The evolution and innovation of China’s fair competition review system. China Market Regulation Research, (8), 24–29. (in Chinese)