On Reform and Development of Public Utilities in China

This paper analyzes the mold and transformation process of the public utilities development in China and points out the existing problems of public utilities goods supply in the current situation: comparatively lower prices that severely deviate from its original costs,the loss of operating in business units and heavy financial subsidy.Besides,the development and management of public utilities itself is restricted by the government.As a result,the so-called indiscriminate egalitarianism is formed which leads to the lack of initiatives and enthusiasm of enterprises.Also,industry monopoly results in the fact that the suppliers of public utilities goods are in the uncompetitive circumstance without any external pressure and internal motivation.This leads to low productive efficiency and poor service awareness.Moreover,steady and standard constructive capital source is in short supply.