The Analysis Of The Impact Of Foreign Water To The Safety Of The Water Industry In China

Urban water industry is a strong public service sector, which are mostly responsible for the maintenance of urban economic development and protection of the important task of daily life for urban residents. However, with the Government of China to market reforms of public sector deepening, more and more foreign-funded enterprises reached that originally started to enter the influx of government-led to the natural monopoly industries in the enormous economic benefits. In this paper, the government introduced market-oriented reform of urban public utilities background and Selected the city’s water utility industry as a focal point. Further theoretical analysis of foreign water to the water industry in China Security Mechanism, and from an empirical perspective and then established a sub-level water industry safety Evaluation System. Using principal component analysis method estimates the 1996-2009 years, the 14 years the overall safety of our water industry trend index, drawed water industry safety trends showing a gradual decline. Then i measured its sub-index system survive under the water industry, environmental safety index, water index of industrial control environment, water safety index of industrial competitiveness. I found in water affected by the foreign investment is the most serious industrial control environment, water, followed by competitive environment. the smallest effect is living environment of the water industry, On this basis, then through the vector autoregressive model of the impulse response functions were analyzed the foreign service of Touziqingkuang water and Woguo water business overall security posture, Zi living environment under state control over environmental conditions, competitive environment between trends change process; VAR model which, under the impulse response function shows: China’s overall security situation in the water business showed a gradual downward trend;The viability of water business environment has not deteriorated; Control environment to show a small increase first and then decline sharply; Competitive environment was first decreased and then increased gradually to stabilize the situation. On the emergence of the causes of these trends shows a more rational analysis. Finally, I start from the conclusion of this article, on how to deal with the entry of foreign water to the water industry in China the negative impact of security, leading to enlarge and strengthen China’s water industry to make some policy recommendations.