Liu Zhibiao: Peak Shifting Production Mechanism is Essentially the Monopoly of "Cartels"

Release time:2019-04-12Author: Liu Zhibiao

In October 2016, the Ministry of Industry and Information Technology and the Ministry of Environmental Protection issued the "Notice on Further Improving Cement Staggered Production" and decided to implement peak shifting production of cement production lines in 15 provinces of northern China from 2016 to 2020. That is to say, every year when the heating season comes, cement companies shut down the kilns, and can only open the kilns and resume production after the heating season. "Peak shifting production" can reduce cement production capacity and pollutant emissions, especially in winter to avoid the pollution superimposition of heating and cement production, which is beneficial to the country and the people. Liu Zhibiao believes that regardless of the "cutting at one stroke" peak shifting production mechanism or the "differentiated" peak shifting production mechanism, it is essentially a monopoly of "Cartel" for the purpose of limiting output and reducing emissions. Therefore, it is bound to have a high degree of consistency and stability when interests are consistent, and have a high degree of instability when there exists a conflict of interests. This shows that the peak shifting production mechanism violates the antimonopoly law of China, despite the fact that there exist a certain legal basis in the sense of environmental protection, but the means of implementation must be reselected, and the direction of policy adjustment must be consistent with the interests of market players. The basic suggestions are as follows: the focus of the cement production policy should be shifted to the basis of competition policy. Specifically, it is to liberalize production and treat all companies equally.