China is finally dismantling its 2,000-year-old monopoly on table salt

China is easing the government's 2,000-year-old monopoly on table salt by letting producers set prices and sell directly to the market. The monopoly has supported Chinese rulers from the Han dynasty to the Communist Party, even helping to pay for the construction of the Great Wall, The Financial Times reports.

Beginning this year, salt producers will have the freedom to set their prices based on normal market factors like cost, quality, supply, and demand — though the country's top economic planning agency still encourages state officials to keep those prices somewhat stable by tapping a "strategic reserve." The salt producers will also be able to sell without going through government-owned distribution companies, which used to absorb most of the industry's profits.

Nonetheless, most Chinese salt producers still work for the Chinese government, which has also said it will not grant any new licenses into the market until the end of 2018.

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