Click to read the original article for details Every afternoon in recent days, Xiang Wenyong has been visiting a warehouse at Zunyi South Railway Station in Guizhou Province to check on five container cars, worried they might mysteriously disappear. Each car is loaded with 60 tons of salt, with bags indicating the salt originates from Hechuan, Chongqing, 300 kilometers away. Since January 1 this year, China's 2,700-year-old system of regional salt sales has been broken. The State Council officially issued a document on salt industry reform on April 22, 2016, deciding that from January 1, 2017, salt enterprises could break regional restrictions and sell salt across provinces and regions. Notice from Guizhou Province on Salt Market Management Facing the suddenly opened national salt market, former peers became competitors. The 170 provincial-level salt wholesale enterprises have been gearing up for a cross-regional market battle. 300 Tons of Salt Seized in Another Region Xiang Wenyong is a staff member of Chongqing Salt Group in Guizhou. To seize the Guizhou market, starting December 25, 2016, the group shipped over 300 tons of salt in six rail cars to Zunyi. However, they were met with seizure by the local salt bureau without any stated reason or enforcement deadline. On December 19, 2016, the Ministry of Industry and Information Technology (MIIT) and the National Development and Reform Commission issued a notice on salt monopoly management during the reform transition, stipulating that from the date of issuance, salt production enterprises could transport salt to sales areas for stocking, provincial-level wholesale enterprises could stock across provinces, and sub-provincial wholesale enterprises could stock across regions within their province. According to this notice, starting December 25, 2016, Chongqing Salt Group initiated cross-regional stocking in Guizhou, sending six rail cars of 360 tons of salt from Hechuan Salt Field to Zunyi South Railway Station. On December 30, the six cars arrived. On the afternoon of December 30, Xiang Wenyong, as the consignee, went to the station to pick up the goods but was unexpectedly blocked by law enforcement officers from the Zunyi Salt Bureau. Lei Yin, general manager of Chongqing Salt Group's Guizhou region, said local officers demanded original ID of the consignee and product sampling reports. After Xiang provided his ID and a quality inspection report from the Chongqing Salt Bureau, the officers rejected it and demanded re-inspection. The Zunyi Salt Company forcibly pulled the six cars into its own dedicated warehouse for unloading. In fact, on December 28, the Zunyi Salt Bureau had already sent a letter to the local railway department, requesting that the six cars be transferred to the local salt company's dedicated line for unloading and investigation. The notice (provided by interviewee) stated that after preliminary investigation, the salt was suspected of violating salt reform policies, and the sender and consignee were suspected of violating national salt regulations. The Zunyi Salt Bureau decided to register and preserve the salt at the warehouse of Guizhou Salt Group Zunyi Company's South Station, and to sample for evidence. It added, "If the consignee comes to handle procedures, please inform them to contact the Zunyi Salt Bureau. Any legal disputes arising will be solely the responsibility of the Zunyi Salt Bureau." On the morning of December 31, Chongqing Salt Group insisted on picking up the goods. Only the first 60 tons were released; the remaining 300 tons remained seized. Local salt enforcement officers told the logistics driver that they only recognized local salt transport permits, and Chongqing Salt Group's permits were invalid; if they transported, they would be fined and the vehicle impounded. They also told the unloading workers that the salt was suspected of violations and needed investigation, so loading was prohibited. On January 14, Lian Qigang, Party Secretary and Director of the Zunyi Salt Bureau, told reporters from Shangyou News-Chongqing Morning Post that the bureau was only keeping the 300 tons of salt for safekeeping, and "legal documents for enforcement will be issued soon." Lian promised to provide an explanation the next day, but again failed to show up, leaving the release of the 300 tons of salt indefinitely delayed. Cross-Provincial Salt Sales Seized in Multiple Regions Chongqing Salt Group's experience in Guizhou is not isolated. On January 2, 30 tons of salt sent by Shandong Feicheng Refined Salt Factory, a designated salt production enterprise, to Xinye County, Henan, were seized by local salt company inspectors on the grounds of "engaging in cross-region wholesale without a salt wholesale license, violating the Salt Monopoly Measures." After the factory's sales staff showed a stamped salt wholesale license, Xinye County Salt Bureau staff replied, "Your license is yours; food safety requires a license per region." When a reporter called the Henan Provincial Salt Bureau, staff said, "The state has only issued a plan, not specific rules," so it was impossible to judge whether enforcement was correct. In the following days, incidents occurred across the country: Sichuan Jiuda salt was seized in Henan, Chongqing salt was sealed in Hubei, and Shaanxi Salt Company forced salt enterprises entering Shaanxi to use its platform for sales. More seriously, in just six days from January 7 to 13, salt bureaus in multiple places in Jiangsu confiscated a total of 19 batches of China National Salt Industry Corporation's salt products, citing reasons such as "illegal wholesale of salt," "no salt wholesale license," "selling salt with iodine content not meeting local standards," "incomplete legal documents from suppliers," and "cannot sell foreign salt." Some seizures were made without administrative penalty notices or confiscation receipts. According to industry insiders, as cross-regional salt sales conflicts intensify, some places have begun to use police force in extreme cases. Cracking Down on Logistics Distributors to Control Salt Transport Networks In addition to using various disguised enforcement measures to keep foreign salt out, local salt bureaus have realized that with market opening, salt wholesale logistics networks are more important. Therefore, they are warning and punishing local logistics wholesalers who cooperate with foreign salt. On January 3, in Duyun City, Qiannan Prefecture, Guizhou, local logistics wholesaler Hongsheng Grain and Oil Trading Company purchased 60 tons of foreign salt, which was directly seized by the local salt bureau under the name of "registration and preservation." On January 4, in Yichang City, Hubei, local salt logistics distributor Qin Wanjian purchased nearly 20 tons of foreign salt. The next day, local salt bureau officers came and seized all the salt, claiming he lacked a sales license, and issued a huge fine of over 140,000 yuan. The notice Qin received (provided by interviewee) Qin told Shangyou News-Chongqing Morning Post that he was only responsible for salt distribution and had not violated any rules. According to MIIT regulations, salt wholesale enterprises (including designated production enterprises with wholesale licenses) can conduct cross-regional sales by building their own logistics systems or signing distribution contracts with third-party logistics companies to deliver salt to supermarkets, sales outlets, and end users such as food processing and catering units. On January 12, Shunchang Grocery in Dehua County, Quanzhou, Fujian, was threatened by the local salt bureau not to sell 60 tons of foreign salt it had purchased for wholesale, because terminals were not allowed to sell foreign salt. The blank receipt Xiong Tangxiu received (provided by interviewee) In Danzhai County, Guizhou, local salt retailer Xiong Tangxiu had 10 boxes of salt seized by local enforcement for selling foreign salt. The officers left a blank receipt with no signature or official seal. Shangyou News-Chongqing Morning Post learned that in Hubei Province, more than 10 logistics distributors have been seized by local salt bureaus for allegedly selling foreign salt, spread across more than 10 counties and cities, with over 200 tons confiscated. Regarding the 300 tons seized in Zunyi, the Zunyi Salt Bureau director Lian Qigang said that if Chongqing Salt Group would reveal the delivery destinations and consignees, the bureau would immediately release the salt. Chongqing Salt Group refused, citing commercial confidentiality. Lei Yin, manager of Chongqing Salt Group's Guizhou region, said the 300 tons transported by train had completely legal procedures, and the Zunyi Salt Bureau had no basis for punishment. The group would never hand over the list of logistics distributors because doing so would expose the entire logistics network to harassment and threats from the local salt bureau, potentially paralyzing it. Some Local Governments Issue Protectionist Policies In addition to targeted enforcement, some provincial salt bureaus have publicly issued documents for local protection. A document obtained by Shangyou News-Chongqing Morning Post shows that as early as December 29, 2016, the Industry and Information Technology Commission, Food and Drug Administration, Development and Reform Commission, Industry and Commerce Bureau, and Salt Administration of Qiandongnan Prefecture, Guizhou, jointly issued a notice on strengthening salt market management across the prefecture. The final clause explicitly stated: during the transition period, to reduce safety risks at important venues, it is recommended that schools, government canteens, catering enterprises, and large and medium supermarkets in the prefecture choose salt distributed directly by county-level salt companies to ensure supply safety. Some provinces and cities have even issued regulations deeming cross-regional salt distribution illegal. In a notice issued on December 27, 2016, the Shandong Salt Bureau stated: "Salt wholesale enterprises and designated salt production enterprises (including multi-species designated enterprises) conducting cross-regional wholesale shall not engage in disguised distribution or agency under the guise of consignment or logistics distribution. They shall not entrust other units or individuals without salt wholesale qualifications to resell or act as agents." According to MIIT Document No. 211 of 2016, salt wholesale enterprises can use self-built logistics or entrust third-party logistics for distribution. The Shandong notice clearly violates MIIT regulations. Salt Reform Challenges Require Local Regulations Tan Zongze, dean of the Administrative Law School at Southwest University of Political Science and Law, believes that such market chaos in the early stage of salt reform is normal, as the millennia-old administrative monopoly needs to be broken, and all parties need time to adapt. Tan believes the most important thing now is to streamline the legal system for salt reform, from national legislative amendments to local regulations, ensuring coherence and operability. Currently, most provinces and cities have not issued implementation regulations and are waiting. Additionally, salt enforcement teams should be separated from salt companies to ensure interest detachment and neutrality, so they are not both referee and player. Only then can local protectionism be broken and reform proceed smoothly. Liu Yubin, a partner at Chongqing Suotong Law Firm who has long followed salt reform, told Shangyou News that there are currently over 170 designated salt production enterprises nationwide. As competition intensifies, market elimination and reshuffling will accelerate, possibly leaving only about one-tenth as monopolistic large enterprises. During this process, if the salt system and related laws lag behind, and if enforcement departments are not separated from salt companies, the conflict will intensify and slow the reform. Shangyou News-Chongqing Morning Post learned that the current "Salt Industry Management Regulations" and "Salt Monopoly Measures" were promulgated by the State Council in March 1990 and May 1996, respectively. These regulations played an important role in promoting China's salt industry and established a management system centered on the salt monopoly. Although the salt monopoly has been important in ensuring iodized salt to eliminate iodine deficiency disorders, stabilizing salt prices, and responding to emergencies, its planned management and government pricing have also created drawbacks. For example, it led to administrative fragmentation and inefficiency, with multiple circulation links and low efficiency, failing to form a unified national market. Currently, MIIT has initiated revisions to the "Salt Monopoly Measures" and "Salt Industry Management Regulations," expected to be submitted to the National People's Congress for amendment during this year's two sessions. (Reporter: Fan Yongsong, Chongqing Morning Post) -END-