China Food Industry, Government Regulation Study

In recent years, China's food industry has repeatedly exposed the crisis. The issues of food safety not only affect the individual's healthy body and even one's life, but also can lead to economic chaos, it is imperative to establish a comprehensive system of food safety.In the author's thesis, government regulation theory will be divided into two phases: food to enter the market before and after the food to enter the market, based on the broker's assumption. This thesis tries to analyze the relevant stakeholder and get the Nash equilibrium in the process of introducing the relevant stakeholder from the central government, local governments, enterprises, and consumers of the game. And it also states the root causes of food problems from the perspective of the interests.By using the game theory to analyze the subject of various stakeholder interests, it concludes:first, in the government regulation of food industry, the local GDP growth is an indicator for the central government to assess local government, in order to maintain the GDP growth of the local government, leading to the conduct of protecting local enterprises; second, in the light of the broker's assumption, if the probability of local governments protecting local businesses is high, it will bring about the bribery of local businesses and a phenomenon of rent-seeking of local government; third, the possibility of rent-seeking will make consumers and food manufactures form food information asymmetry, combing food manufactures may adopt false advertising and an imperfect spokesman system of food safety, which will make consumers buy the low-quality food.According to the advanced experience of developed countries, this thesis attempts to improve food safety by the establishment of information networks and databases, eliminating the information asymmetry problem; the establishment of flexible government performance evaluation system of local government performance evaluation; improving China's food recall-system through the food safety information networks; effectively protecting consumers' interests by the food safety information networks and the improvement of relevant laws and regulations.The establishment of China's perfect food safety system is not the work of a single day, requiring our country from the central government to local governments, from government functionary to the joint efforts of ordinary people.