Analysis On The Critical Issue For Playing Role Of Chinese Government In The Venture Capital

Venture investment is a market economy behavior, but cannot do without thesupport of the government. The venture investment industry in main developedcountries started earlier than developing countries. According to their ownactual conditions, USA, European and Japanese government have played animportant role respectively in the process of policy making and direct investment.With the different focus, they use reasonably various policies and means ofeconomic adjustment, successfully forming characteristic venture investmentmodel, which take effect as a bridge between the high and new technology andcapital market. In reference to international advanced experience, to make clearthe role of our government in the field of venture investment, is of greatsignificance not only to promote the rapid development of China’s venturecapital industry, but also to conduct the high-tech industry and the nationaleconomy continued to grow.This paper uses the qualitative and quantitative analysis method, reviewed thedefinition, characteristics and function of the venture investment, summed upthe development process and mode characteristics of USA, Japanese andEuropean venture capital, analyzes the current situation of the development ofventure investment in China and the existing problems, in conclusion putsforward suggestions to promote the venture investment industry for Chinesegovernment. Analysis results showed that, the venture investment in ourcountry starts late, and the supporting system is not perfect. For theestablishment of a unique system of venture investment, we have not onlyto learn from the successful experience abroad, and also to work based onChina’s national conditions, in strict accordance with the laws of the market. Weneed establishment principles like "management principles and policies, improvethe environment, strengthen supervision, control venture", in carrying out thespecific work to do "not arranged, no interference, no offside". Finally we putforward policy suggestions to the government: to establish and perfect theventure investment system of laws and regulations, formulate scientific andreasonable preferential policy, cultivate a healthy venture investment marketenvironment, building a high-quality personnel. From two aspects of externalenvironment and internal mechanism, the government will promote to realize thesustainable development of China’s venture capital industry.