Studies On Functions Of The State Commodity Reserve

It is a primary goal for any peaceful, unified, sovereign, independent country to maintain the prosperity and stability of the national economy and social life. Every government makes great efforts to pursue this goal without exception. In the process of reaching this goal, every country will face the threat of three uncertain factors: natural disaster, external war, and the weakness of high dependence on foreign resources. No matter which factor becomes reality, it will cause the shortage of commodity supply or increase of prices, which affects people's life and social stability. It might also result in the difficulty, even cease, of the production of civil and military materials, which seriously weakens the comprehensive capacity and national security of the state during this period of time. Therefore, building up the state commodity reserve to safeguard against the harmful effects of these three potential threats has become an important aspect of national conducts. Meanwhile, the influence, produced reasonably and legitimately by this conduct, must conform to the policy of national commodity market and be able to provide the maximal assurances of political, defensive, and economic benefits.The state commodity reserve in China was established under the condition of a planned economy. At that time, the definitive functions of this system were: guarding against war, disaster, famine, and the major proportional imbalance of national economy. By discussing the developmental course and current demands of state commodity reserve, analyzing the nation's basic condition and market economy system, using the experience of state commodity reserve from foreign counties with a developed market economy for reference, this thesis will comprehensively review strategic materials, national security, foreign policy, and economic issues. The article focuses on analyzing the function, role, and practical approach of the suitable state commodity reserve in a socialist market economy. The functions of"serving national defense, coping with unexpected events, safeguarding market, and ensuring national security"reflect Chinese characteristics and current demands. In addition, this article will explore the quantitative analysis of the cost and profit of commodity reserve to stabilize the market.