Chinese Cigarette Industry Market Structure Optimization Study

China is the biggest tobacco producing and consuming country. Since the implementation of tobacco exclusive agency policy, China's tobacco industry has achieved great achievements. According to the statistics of 2004, Chinese cigarette production achieved 1873.595 billion a year, and the sales achieved 1866.542 billion, accounting for 31% of the world. In 2003, the taxes of the whole industry were 168 billion Yuan, and then increased to 213 billion Yuan in 2004, which was about 10 percent of the state aggregate tax. Additionally, as far as present condition is concerned, China's tobacco offers great employment opportunities and income sources to 20 million tobacco farmers, 10 million salesmen and 5 million enterprise employers. During the courses of building our affluent society, tobacco industry will still play important rolls. Now, China's tobacco has had great economic strength and advanced manufacture competence, and has established comparably complete industrial system. It has the ability of self-protection and self-development.However, with the mergence of China's economy and WTO rule, foreign cigarettes have gradually entered into domestic market. China's tobacco market will unavoidably encounter the competition and challenge from transnational tobacco enterprises.Being up against the challenge, it is necessary to analyses China's cigarette market structure. In doing so, the essay employs econometrics method and statistics method to study the market concentrate ratios, the relationship of the enterprise scale and performance, scale economy of China's cigarette enterprise, and the comprehensive strength of main cigarette enterprises. The study finds that the concentrate ratio of China's cigarette market is comparably low, the enterprises can not come into being their scale economy; the market is segmental, and the resources distribute improperly; the regional consumption attribute of tobacco is very apparent, and the types of the product are simplex. In order to improve the effectiveness, technical level, and cope with the competitiveness of foreign enterprise, it is necessary to meliorate China's cigarette market structure. This essay offers the following measures: the first one is...