The Industrial Barrier Explanation Of Excessive Competition On The Backgroud Of Economic Reform In China

China has made remarkable achievements in economy after reforming and opening to the outside world, It changed from a planned economy to a market economy endure the problem of industrial organization, because of the initial market economy system is not yet mature, the legal system is not perfect. Specifically expressed in excessive competition in most sectors of the phenomenon, the main features of the excessive product supply, low-cost price war and low efficiency is not out of the market,.in seller's market, and inadequate investment inenterprise technology, more investment in technical content low quick industry, enterprises of mutual imitation, product differentiation is low; in the buyer's market, often appear insufficient effective demand, excess supply situation. Over the loss of competition on producers at prices below cost long-term profits of losses, the vicious competition among enterprises restrict long-term investment in the development of enterprise technology; impact on consumers is the product less effective, manufacturers in the price battle of survival is achieved by reducing the quality of products, which directly caused the loss of consumer welfare. According to China's Economic Transition special economic environment, our analysis of the phenomenon of excessive competition, barriers to the angle from the industry with the actual economic context try to find a solution to the idea of the phenomenon of excessive competition in China.The phenomenon of excessive competition in China and abroad under the mature market system is different, in a mature market system under the government regulations or aid can enter the kingdom of the enterprise to help the enterprises to withdraw, but instead of excessive government intervention, especially on the barriers in the industryterms of exit barriers contributed to the occurrence of excessive competition; Furthermore, is the phenomenon of excessive competition in China has spread to a wide range of characteristics, in the excessive competition in most industries in the state, not only in the low concentration of atomic industry, but also a high concentration of monopolies; special state-owned enterprises in China over the competition also played a role in boosting the state-owned enterprises account for most of the industry, higher barriers to entry and excessive government intervention exacerbated the occurrence of excessive competition.This study focuses on the interaction of industry barriers to the formation of the inner principle of excessive competition. Detailed analysis of the economic transition of special economic conditions, focusing on barriers from the industry, angles, respectively, combined with barriers to entry and exit barriers in the role of excessive competition, to identify barriers and industry, the internal mechanism of interaction of excessive competition, combined with state-owned enterprise is excessive competitionattributed to the special nature of the negative impact of excessive government intervention.This article describes the body of the first three characteristics of excessive competition, combined with China's cement industry, TV industry and other relevant data of excessive competition argument happened. Second, from the Industrial Barriers perspective, detailed analysis of the industry's entry and exit conditions, explaining the Industrial Barriers failure is mainly due to excessive competition, comparative analysis of the industry, barriers and the internal mechanism of the formation of excessive competition, combined with state-owned enterprises in China to discuss the specific situation excessive competition in the specialty in our country, and finally concluded that excessive competition was the result of the Government of China's economic transition period caused by the improper intervention of the lower barriers to entry and exit barriers to increase the occurrence of excessive competition provides a breeding ground, made some deal with Over Competition Competition to effective competition from the disorder's basic ideas.