On Change of Boundary of Natural Monopoly and Adjustment of Governmental Regulation

Natural monopoly is one of the traditional domains for governmental regulation. With the advancement of technology and the expansion of demand and market, the traditional boundary of natural monopoly keeps changing, consequently government regulatory boundary and methods change simultaneously. In China, natural monopoly coexists with administrative monopoly arising from governmental monopoly. Due to institutional reform, technical progress and market expansion, the boundary of China's natural monopoly and governmental regulation are undergoing fundamental transformation.