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A brief history of Chinese salt, the world's oldest monopoly ...
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China National Salt Industry Corporation (Chinese: span lang = "zh"> ??????? ), abbreviated as Chinese Salt (Language Mandarin: ?? ), is a Chinese state-owned company that controls the monopoly on edible salt management and production. The company employs 48,476 workers, and controls assets worth 44.19 billion yuan (7 billion dollars) in 2011.

Subsidiary of Salt China, China National Salt Industry Co., Ltd. is a joint-stock company with limited liability, which will become SPV to list most of the group's assets in the stock market.


Video China National Salt Industry Corporation



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In Chinese history, each dynasty instituted a salt monopoly system, originally intended primarily for tax purposes. Because salt is an important and irreplaceable commodity used in everyday life, and therefore worthy of a stable source of government income, various historical rulers use a salt monopoly that prohibits the production and sale of salt by the commoners. The practice of monopolizing salt began during the reign of Emperor Wu Han, and during the Tang dynasty, income earned from the salt tax by the salt commissions accounted for more than half of government revenue; during the Yuan dynasty, this figure reached 80%. With the founding of the People's Republic of China in 1949, the state salt monopoly practices continued; the salt tax continues to form a significant proportion of government revenue, representing 5.49% of the total national tax in 1950, but with a shift in economic development, this has been reduced to 0.04% in 2006.

Founded in February 1950 and formerly known as China National Salt Industrial Company (China), China Salt controls the national government's monopoly on the salt industry in China. In 2003, the administration of government-controlled enterprises was shifted and placed under the management of the State Assets Supervision and Administration Commission of the State Council of the People's Republic of China. A law entitled "Regulations on the Management of Salt Industry" (????) states that salt can not be sold in various regions, and that citizens are forbidden to sell their own salt, meaning that salt management is controlled by the state.

In 2011, the production of table salt in China reached 81.98 million tons, making it the largest salt producing country in the world, and a significant increase of more than 18 million tons produced in 1987, and 40 million tons in 2000. This increase is in part because of the development of salt production from mineral and lake sources. However, despite high production figures, salt prices remain expensive in China as a result of salt monopolies; while average salt consumption as a percentage of personal income in the United States, France and Australia is 0.06%, 0.04% and 0.04% respectively, this value is 0.12% in China.

Maps China National Salt Industry Corporation



Management

The price of salt is set uniformly at the national level by China Salt, which centrally makes all decisions related to market prices. All table-produced salt is legally labeled as "Chinese Salt" before shipping is transported and sold in the retail market. Salt producers have no decision-making power in terms of sales and production, and only follow the direction of Chinese Salt. As a result, there is no market competition among salt producers and a significant lack of product diversity. China Salt works well as an operating company and the entity responsible for formulating administrative policies, has full control over salt production standards.

Iodine deficiency is a known problem in the western, southern, and eastern regions of the country, which historically do not take their salt from seawater. Chinese salt is responsible for the iodizing of edible table salt in China, where producers of legal salt produce iodized salt according to the requirements of China Salt. Since monopoly is the sole provider of iodized salt, consumers have no choice over how much iodine they consume, which has led to health problems associated with an iodine overdose; there is an increase in reported cases of thyroid cancer in China during 2013. By 2014, table salt in the Chinese market contains about 20-50 mg of iodine per kilogram.

Salt in Chinese history - Wikipedia
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Contemporary issues

There are many calls for salt monopoly to be broken down and privatized. It is said that salt monopoly can no longer be justified, since the basis of its existence to protect the national economic interests no longer exists, and it harms the consumer.

On March 8, 2013, Taobao was forced to remove all the salt lists from the online market, as it violated a law prohibiting salt sales across the region. Private businesses that violate salt regulations are fined and their salt products confiscated. One such case occurred in Chongqing in 2013, where 90 tons of illegally manufactured industrial salts intended to be sold as edible salts in Hubei, Sichuan, Shanxi, Shandong and Henan were seized by authorities, with a total market value of roads amounting to 4 million yuan. Since China Salt controls state salt mines and salt wetlands while selling at high prices, companies producing food products such as soy sauce and seasonings have used the illegal use of industrial salts made by artificial manufacturers in an effort to reduce costs, at the risk of being caught and fined.

The world's oldest monopoly is finally coming to an end â€
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References


Industrial Rock Salt Market Research Report- Global Forecast to ...
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External links

  • Official website

Source of the article : Wikipedia

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