The central government recently blocked an acquisition by Coca-Cola of the mainland's leading juice maker Huiyuan in order to prevent the formation of a monopoly.
To my mind, the government made the right decision. Although the more than 20 per cent domination of the market that would have resulted from the merger is not exactly a monopoly, it would have been a huge share of a very huge market.
The merger of the two drinks manufacturing giants could have created a negative effect on competition and forced consumers to pay higher prices.
Competition not only keeps prices down; it forces manufacturers to improve their products, which is good for everybody. Any kind of monopoly affects prices and the quality of products.
I am relieved to see that the government put its foot down and prevented that from happening.
Michael Hung Sze-chung, POCA Wong Siu Ching Secondary School
