The Problems Of The Current Chinese Tobacco Industry Under The Government Control And Countermeasure

Chinese tobacco industry is grow up under the Government's strong intervention, government control directly effect on the operational behavior and the market structure of the China's tobacco industry. Government's controls on the tobacco industry by social control, market structure control, control access, quality control, etc. Such control not only a distortion of the operational behavior of the tobacco industry, and eventually led to the limited market competition of region under the protection of the interests, which ultimately affect on the Chinese tobacco industry's development. Research papers use the historical, comparative analysis and the literature study, investigation of the scene, Analysis the history, current situation, problems, causes and Countermeasures of tobacco industry's government control.The main reason for the China tobacco monopoly control is high social costs and the serious localism of sale tobacco. High social costs from the perspective of the economics described the unscientific of tobacco consumption, and serious localism of tobacco production and sales areas turn out to be low efficiency, has hampered the development of the tobacco industry, to be the great waste of the community.At present, Chinese tobacco monopoly control have many problems, mainly in the following aspects: the high cost of monopoly control; price regulation system tobacco is not standardized, caused confusion on the tobacco prices, yield and brand control system restricting the improvement of the competitiveness of enterprises; segmentation control caused the tobacco cardiopulmonary bypass; monopoly control lose balance of the "Community" and "interests" . The three fields of reasons for the tobacco control problems: The current tax policy impact on local government segmentation control, and protection of local and other short-term and "partial" behavior, thus confusing such as derivatives of price, and cardiopulmonary bypass low concentration of the brand , between the central and local governments, financial imbalances to stimulate the local government to motive of interest, which overlooked the purposes of public welfare; the current organizational structure to a large extent constrained the competitiveness of industrial enterprises and local governments short-term behavior.To successful solve a series problem in the Chinese tobacco control, on the basis of to experience from abroad measures ,we should take: gradually change the current macroeconomic fiscal and tax policy, tax reform from the consumption-related taxes to the consume taxes; straighten out relations between government and enterprises, the introduction of a modern enterprise system; promoting enterprise restructuring and mergers, nurturing world-renowned brands, build the international cigarette market ;positioning reasonable "public good" and "interests" and intensify anti-smoking efforts, coordinating the interests of the central government and local governments, weakening localism; strengthening the vertical control.