The Research On Chinese Institution Of Selling Right Being Exclusive To Government During The Transitional Period Juxin

China has a long history for implementation of dealing exclusive to government system. There are many complicated factors that all the rulers in past dynasties think highly of this institutional tool. And the characteristics of product itself play an important role. Monopoly goods usually contain these characteristics:(1) the stability of consumer demand in these goods; (2) Indispensability in people's daily lives. Besides, the consumption of monopoly goods in our state like tobacco and salt have important influence on citizens'health. To control the quality, quantity and price of these goods provide a way of maintaining market environment and satisfying the demand of people's everyday life. But the function of dealing exclusive to government system is not limited to public health, it also covers:(1) provides an extra source of revenue; (2) maintain political stability through ruling out the possibility of wealth absorption of person and organization at home by monopoly; (3) safeguard the state interests through impose restrictions on multinational corporations by monopoly.Institution reflects the will of ruling class. But it acts effectively only when conditions satisfied. China has become one of the members of WTO. And has opening up to the outside world in diverse areas. The dealing exclusive to government system in China has been questioned to some extent. Against the background of global anti-tobacco drive as well as the Chinese entrance of Framework Convention on Tobacco Control(FCTC), China should reduces the probability of smoking in public areas by laws and regulations gradually. But this conduct will bring adverse impact on the Chinese local government in the current system, which is also the reason of the dissatisfaction on the effect of no-smoking policy.The external environment is challenging the Chinese government for the reform of dealing exclusive to government system. Actually, the implementation of this institution in domestic also faced with problems. It concludes:(1)the impropriety relationship between common interest and private interests; (2) the local protectionism is becoming increasingly fierce; (3) high cost of the implementation of this institution; (4) counterfeit cigarettes, contraband cigarettes, improperly obtained cigarettes and unintended cigarettes in tobacco sector and illegal salt in salt industry (5)incomplete laws and regulations. These problems are result of many mutual-effect elements. It covers:(1) government and enterprise united management system; (2) the incomplete fiscal and tax policy; (3) performance evaluation system with economy's GDP growth as its centre piece; (4) inefficiency and profit-seeking conduct caused by the monopoly itself; (5) bounded rationality of government official and the complexity of laws and regulations.In the progress of reform on Chinese state monopoly system, the following principles should be abided:(1) differential treatment; (2) public interests; (3) step by step; (4) market orientation. According to the principles above, this paper puts forward following suggestions:(1) change the traditional ideas and improve the mechanism of supervision in every aspect;(2) adjust the relation between central government and local regions and perfect financial and taxs system;(3) rationalize the government-enterprise relationship and push forward the introduction of a modern enterprise system;(4)perfect the personnel system and innovate the performance evaluation system;(5)improve laws and regulations in this period and transform and innovate the dealing exclusive to government system.