China's Direct Regulatory System Analysis And Perfect

The Direct Sales had gone through a zigzag development over ten years since it was initially introduced into China in the early 1990's, until the kernel of legislation on direct selling Regulations on Administration of Direct Sales and Regulations on Prohibition of Chuanxiao enacted by China administration in the end of 2005, which indicated the elementary establishment of China's supervision system and ruling by law of direct sales also,It is impossible for China (because of its idiosyncratic circumstance of economy, society and culture) to copy the regulations and experience, which derive from some states and regions whose direct sales were well developed, notwithstanding they could be used for reference by Chinese government. Consequently, some necessary recasts should be made when the interrelated system and experience are introduced into China's statute from outside, those which embody in the above two regulations profoundly.It will take the authority a long time to foster and perfect its supervision system of direct sales, though the Regulations on Administration of Direct Sales and Regulations on Prohibition of Chuanxiao have been hitherto carried into execution over a year. In the course of stabilizing market in direct sales, cracking down Chuanxia and protecting consumers' rights and interests, the aforesaid two decrees took a positive effect, whereas some plagues, such as, firms running illegally in despite of a strict limitation to market access, ever-lasting Chuanxia events, difficulty in really prohibition of paying by regiment and excessively simplex measure in supervising of the competent administration, were exposed under the existing system at the same time and corresponding steps must be taken by the government to resolve them.Given an explicit definition of direct sales by the author, this paper will make a general comment and analysis on the active system of China's supervision of direct sales and its historical development. On the ground of comparing the market access, conducting of company, relationship between the salesmen, direct selling and infliction of Chuanxiao in China with foreign relatively typical supervision system of direct sales, some conclusions will be drawn to point out the issues of China's subsistent system. By way of demonstrating the development of direct sales and the emerging disadvantages in the course of carrying out the above two regulations in China, this article will figure out the source of the nature and an approach to settle it.Conclusively, the principle of direct sales supervision should be "to unloosen the monolayer direct sales advisably and the multilayer one prudently" with a method of "leading instead of interdicting" to expand the number of legitimate corporations in direct selling and crack down Chuanxiao by taking good use of the associated strength from market and society. At the same time some suggestions will be given to amend the disfigurements of the existing China's supervision system of direct sales in the thesis as well.