The most serious distortion of the current taxi sector regulations lies in monopolistic operation by taxi companies resulting from the control on the number of cabs and a strict market access, Zhang Guohua, director of an institute of urban traffic research affiliated to the National Development and Reform Commission, the top economic planner, pointed out in a recent signed article.

Both the government and taxi drivers fail to share the profits from such a monopoly, which is dominated by the taxi operators, while consumers have to pay for the monopolistic market, he said.

Given his official background, Zhang's lashing out at the taxi sector has drawn much attention, and it is expected this will herald the country's efforts to reform the long-controversial and problematic sector.