China is by far the largest producer of tobacco products in the world. As a big tax source, tobacco industry brings about 10%of China's annual income.At present tobacco industry is under the administrative monopol...China is by far the largest producer of tobacco products in the world. As a big tax source, tobacco industry brings about 10%of China's annual income.At present tobacco industry is under the administrative monopoly management in China. The nation's policy and management mechanism greatly influence the competition structure of tobbacco industry. Due to the double character of tobacco, the country generally imposes a high tax and limits total product output in order to control the tobacco market. Therefore, the price signal of tobacco market is distorted and to a large extent the competition of the industry is far from a free one. The cigarette production is in a multi element competition style within the nation's planning system. In other words, administrative monopoly and over competition exist simultaneously in China's tobacco industry. The country predetermines the output quota of each cigarette manufacturing enterprise and the actual production outputs of these enterprises could be adjusted through the quota trades among them. The competition in tobacco industry is mainly represented in 3 modes, i.e.production output competition based on quota trades, value added competition in producing and marketing, and the niche market competition based on product classification.展开更多
文摘China is by far the largest producer of tobacco products in the world. As a big tax source, tobacco industry brings about 10%of China's annual income.At present tobacco industry is under the administrative monopoly management in China. The nation's policy and management mechanism greatly influence the competition structure of tobbacco industry. Due to the double character of tobacco, the country generally imposes a high tax and limits total product output in order to control the tobacco market. Therefore, the price signal of tobacco market is distorted and to a large extent the competition of the industry is far from a free one. The cigarette production is in a multi element competition style within the nation's planning system. In other words, administrative monopoly and over competition exist simultaneously in China's tobacco industry. The country predetermines the output quota of each cigarette manufacturing enterprise and the actual production outputs of these enterprises could be adjusted through the quota trades among them. The competition in tobacco industry is mainly represented in 3 modes, i.e.production output competition based on quota trades, value added competition in producing and marketing, and the niche market competition based on product classification.
