The National Development and Reform Commission, the country's top economic planning body, announced Monday that it was revoking administrative rules pertaining to the licensing of exclusive rights to produce and sell salt. This step was seen as part of broader efforts by the State Council to streamline administrative procedures and delegate decision-making powers to lower levels of the government.

Salt-related Chinese stocks rallied Monday as investors interpreted the news as a sign that the tightly controlled sector would soon undergo major reforms which would open it up to social capital. However, industry insiders soon pointed out that since salt production and sales remain under the control of local authorities, the abolition of licensing rules won't necessarily lead to substantial changes. Salt prices, after all, have historically undergone only modest fluctuations based on guidelines issued by local officials.

Yet, such a misunderstanding underscores the demand for an overhaul to the State's edible salt monopoly. At the beginning of 2013, online shopping platforms taobao.com and dangdang.com asked vendors to stop selling salt as such sales circumvented the control of local authorities.

Based on an editorial from the China Business News.

China Business News