Failure And Correction: Research On Government Regulation Of China’s Used Car Market

In theory,the used car market is a market form naturally derived from the maturity of the automotive market.This theoretical logic is consistent with the process logic of the development and development of the used car market in Western countries.However,unlike the Western countries,China’s second-hand car market and the automobile market started at the same time.It was developed under the background of the economic system reform and driven by relevant regulatory policies.Since1980,the central government has begun to reduce the proportion of mandatory plans for automotive products year after year,which has given birth to a car trading market with a certain planned economy.At the same time,some large cities such as Beijing and Shanghai have also appeared in the "underground trading" behavior of old vehicles of a certain scale.In 1985,the State Administration for Industry and Commerce promulgated the "Interim Regulations on the Management of Automobile Trading Markets",and the automobile trading activities including used cars were officially incorporated into the track of government regulation.In the same year,Beijing established the country’s first used car market.After more than 30 years of development,more than 800 used car markets have been established in the administrative divisions of the province,city and county.In 2017,the number of used cars in the country was close to 12 million,and the transaction scale exceeded 800 billion yuan.It is worth noting that there are serious irregularities in the booming used car market.In recent years,the number of consumer complaints cases involving used car manufacturers in various consumer associations and industrial and commercial administration departments has rapidly increased,which reflects the current chaos in the domestic used car market.In fact,since 1985,in order to regulate the behavior of the used car market,only the central government has issued more than 20 regulatory policies.The original intention of these policies was to effectively regulate the used car market,thus forming an "exogenous order" that complements the market’s "endogenous order." However,from the actual results,these regulatory policies have failed to give full play to their constraints and corrective functions on the second-hand car market,and the “exogenous order” of the domestic used car market has not really been established.In this sense,we can say that there is a certain degree of "regulatory failure" in the government regulation of the domestic used car market.Based on the theory of government regulation,this paper uses a variety of research methods to conduct interdisciplinary research on“Government Regulation Failure and Correction in the Domestic Used Car Market”.In this paper,based on the analysis of the correlation between the development and development of the domestic used car market and the changes of government regulation,the author summarizes and summarizes the failure of the government regulation in the domestic used car market from five aspects,and fails on various “regulatory failures”.The specific causes of the problem have been studied in depth.On this basis,the author starts from the realistic characteristics of the socialist market economy with Chinese characteristics,and selectively draws on the government regulation experience of the used car market in the western countries,and proposes four countermeasures for the correction of the government regulation failure in the domestic used car market.