Without competition, there will be no market economy. Fair and sufficient competition is the essential feature of a market economy. Competition policy is not isolated. In the national economic regulation policy system, the basic role of competition policy is mainly manifested in the following aspects:1. Resource allocation is based on competition. Competition helps to form a price signal and a mechanism for survival of the fittest, to promote the flow of resources to industries that meet market needs and more efficient enterprises, and to promote the transformation of economic growth from relying mainly on resource input to innovation-driven;2. The cultivation of market entities is based on competition. Ensuring the neutrality of competition and weakening the effect of competition means ensuring the equal status of market players, equal opportunities for competition, and decoupling the operation of enterprises from risk-taking.3. The industrial organization policy is based on competition. The basic role of competition policy in industrial organization has two implications: one is to highlight the role of market mechanism in the choice of industrial organization; the other is to further improve anti-monopoly policies.4. The construction of market order is based on the construction of competition order. Whether competition is effective or not, the key lies in the orderly competition. The focus of market construction is to establish a unified, open, and orderly competitive market, especially to standardize competitive behavior.
