Economic Law Regulation Of China’s Tobacco Monopoly

Tobacco’ development in human history of hundreds of years had created a tobacco‘empire’. Philip Morris International Inc, British American Tobacco, Japan Tobacco Inc andImperial Tobacco Group PLC are in the dominant position of tobacco market, but Chinatobacco only occupies a small share. Tobacco became an important symbol in the westerncountries’ economic and cultural ‘evolution’, while the tobacco industry franchise monopolyis also an important negotiation topic in China’s entry into the world trade organization. Thetobacco industry occupies an important position in China’s national economic development.Tobacco tax for the state tax provided a reliable guarantee for the state tax. China establishesthe monopoly of the operation status of the tobacco industry by Tobacco Monopoly Act.Tobacco Monopoly Bureau and Tobacco Companies exercise exclusive powers to implementthe tobacco monopoly management. The tobacco industry does on the one hand supply hightaxes for the country, on the other hand to obtain the high profits of the monopolies. So in thenew era China must face the challenges of the reform of monopoly industries. The centralgovernment put much efforts to promote the reform of monopoly industries, for example,Anti-monopoly law is enacted without undue delay, and the modification of TobaccoMonopoly Law is only a matter of time. Accompanied by anti-smoking campaigns in theworld continuing to unfold and the growing number of calls of domestic ban on smoking,kinds of smoking ban, like ‘Non-smoking in public indoor place’, are absorbed by our laws.China’s tobacco industry is difficult to grow in the blessing of the monopoly system fortobacco companies to compete with the world’s tobacco giants, and the reality has begun toshow the disadvantages of sub-trend of development of the world tobacco and the tobaccoindustry can regain vitality only by the reforming of the existing tobacco system andintroducing a competitive mechanism. Firstly this article explains the general theory of thetobacco monopoly regulation system, and then analyzes the tobacco monopoly by theoreticalperspective of economic law, studies the history of world’s tobacco and the historicaltransmutation of China’s monopoly, points out that theoretical dilemma and the reality of theplight of China’s tobacco monopoly regulation，finally proposes the value orientation and ruleof law proposals for regulate China tobacco monopoly.The full text, apart from the introduction and conclusion, is divided into five parts. Thecontent is as follows: The first part is an overview of tobacco monopoly. This part introduces the generaltheory of the tobacco monopoly, defines the concept of the tobacco monopoly, analyzes thecharacteristics and problems of the traditional regulatory system, and introduces theregulation of the tobacco monopoly theory briefly.The second part is the analysis of the tobacco monopoly. This part is the analysis of thetobacco monopoly from the perspective of economic law. In this part this author researchesthe inevitability of the tobacco monopoly and the contradictions of the market economy bythe use of economic law on tobacco monopoly moderate intervention theory, social-based,equitable economic.The third part is the world’s tobacco institutional change and the evolution of tobaccohistory in China. This part discusses the world’s major developed countries’ tobaccoinstitutional change and the implications for China, and describes the historical evolution ofChina’s tobacco monopoly.The fourth part is the analysis of the plight of the Chinese tobacco monopoly regulation.The present endeavor analyzes the theoretical dilemma of China’s tobacco monopolyregulation, and explains the reasons of abolishing or keeping China’s tobacco monopolysystem, and points out that the real predicament lies in the tobacco monopoly regulation.The fifth part which is the article focus is giving the legal regulation proposals aboutChinese tobacco monopoly. Firstly the author describes the value orientation of China’stobacco monopoly regulation, and then points out that China tobacco monopoly regulationshould adopt a gradual reform strategy, and propose rule of law proposals.