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.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Acid rain is back: the sequel nobody wanted
Under The Radar A 'forever chemical' in rainwater is reviving a largely forgotten environmental issue
-
Book reviews: 'Clint: The Man and the Movies' and 'What Is Wrong With Men: Patriarchy, the Crisis of Masculinity, and How (Of Course) Michael Douglas Films Explain Everything'
Feature A deep dive on Clint Eastwood and how Michael Douglas' roles reflect a shift in masculinity
-
Recreation or addiction? Military base slot machines rake in millions.
Under the Radar There are several thousand slot machines on military bases
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement