Vertical Coordinative Relations Of China Cotton Seed Industry

China is the largest country, which produces and consumes cotton, and exports textile and costume in the world. Cotton plays an important role in china national economic development. Cotton seed is the foundation for cotton production, and its industry development is very related to the development of cotton production and textile industry. There are requirements to promote its development and global competitive ability for cotton seed industry now. The author pins his hope on the research referring to vertical coordinative relation, which can provide the method basis for development of cotton seed industry that should meet the requirement from development of socialist market economy.The development of cotton seed industry is still at its primary stage. Cotton seed industry shows various ownerships and different economic elements following the legislation development. Nowadays, the enterprises have become the core of cotton seed industry, and the trend for the industry development is to improve its holistic level and global competitive ability. At present, there are 4 types of the vertical coordinative mechanisms for cotton seed, namely research in enterprise, enterprise in research institution, research institution and enterprise coalition, Sino-overseas joint venture. The industry is establishing its run system that is based on market need. The enterprise behavior gets more and more decided by market, which greatly influences on resource distribution. Nevertheless, there are some reasons from system and mechanism and so on, which lead the industry to immature stage. Cotton seed enterprises are competing each other by brand, price and variety, advertisement etc. for the profit maximum during different stages of industry chain. We can predict that governments will gradually reduce their interference to the industry, and more laws and regulations will pass and issue, and positive industry policies will play important role in the vertical coordinative mechanisms of cotton seed industry.The model for the industry development is to promote coalition between research institution and seed enterprise. Some ways to push the industry development include incubating seed enterprises / enterprise groups, also putting more investment in new technology development, and deepening reform and exerting government function on the industry etc.