Trade Association Of China, The Introduction Of Appropriate Competition Mechanism Theory And Empirical Research

Trade associations have gradually become the third-largest economic players in addition to the state and enterprises. "Small government, big society" model of social governance is coming into being. The Trade associations are playing an increasingly important role in a country's economy. The most basic function of industry association is to provide high-quality service for its members. However, for institutional and historical reasons as well as China's"one industry association for one region and one field"policy, China's Trade associations have developed into a monopoly situation. Bureaucracy and weak sense of service together with low efficiency has already wasted a lot of social resources. Trade associations in developed countries have enjoyed a history of more than 300 years, and their experience has proven that breaking the monopoly of the trade associations and introducing appropriate competition is an efficient way of building service-oriented trade associations.At present, the research of most scholars put emphasis on building external competitive mechanism or changing internal democratic governance, but fewer scholars put the two issues together. In this paper, based on empirical analysis, I propose a new analysis framework which incorporates the internal competition with the external competition. The introduction of an appropriate external competition mechanism is mainly designed to reform the existing association management system and the introduction of an internal competition mechanism is to enhance the internal governance. For continuous improvement of Trade associations'service, an overall evaluation of their performance is needed, so in the last several parts of this paper I try to establish a sound performance appraisal system for Trade associations. Hope my related suggestions will do help to the advancement of Trade associations and the government's decision-making.