The Communist Party of China Central Committee and the State Council recently issued the “outline of the integrated regional development of the Yangtze River Delta”. The author believes that its key is to take the competition policy as the institutional cornerstone for promoting market integration in the Yangtze River Delta.Competition policy is a governance mechanism which protects the legalization and compulsiveness of the competition. It protects the competition instead of competitors. Competition policy helps to limit function and power boundary of the government. At the same time, it opposes enterprises to use various aggressive and predatory means to obtain the monopoly status, which is conducive to breaking all kinds of anti-market integration forces. Competition policy encourages enterprises to achieve market integration by merger and acquisition, which can be used as a micro-basic means and method of macroeconomic integration.In addition, the existing administrative system can also promote and encourage intergovernmental coordination and cooperative governance, especially in the aspects or areas involving planning, transportation, environmental protection, governance and people's livelihood that cannot be automatically solved by the market mechanism through competition.
