Study Of The Role Of Industry Associations In The Development Of Private Enterprises In Yueqing City

The past three decades have witnessed the reform and opening-up and the rapid development of society and economy. The mutual dependence of the government and the enterprise is undergoing the unprecedented changes. The government cannot take on everything for the enterprise any longer, but has to adjust its functions to provide service in an effective manner. The independent development of the enterprise cannot rely on the government to solve all the problems, but needs the government to provide the security in system. Therefore, it has become the common expectation of the government and the enterprise to develop the trade association.Since the late 1970s, Yueqing has witnessed the prosperous development of private enterprises, and the formation of the regional economic system of scale, of which, the low-voltage electrical appliances, electronic products, machinery, meters, garments, leather, ship repair and building, arts and crafts are the leading industries. While the process of the establishment of the system has been mixed up with the seek for nothing but profits, low technologies and disordered competition, and the counterfeit and shoddy products without any certificate have even hurt the consumers of the whole country. However, as the government has promoted a series of counter-measures for striking frauds, and the local entrepreneurs of Yueqing are gradually maturing, Yueqing has become the renowned capital of electrical appliances of China. During the process, Yueqing Trade Association has cooperated with the government to avoid the industrial crisis in the initial period of the economic development of Yueqing, and played a critically important role for the standardization of the private enterprises of Yueqing which could not be replaced by the government. With the improvement of the market economic system, the gradually sharp competition of the international market, and the gradual expansion of the development space of the private enterprises of Yueqing, the trade association spontaneously organized by the medium and small private enterprises cannot fit in with the further development of the enterprises.During the development in the past two decades, Yueqing government offered a large degree of freedom for such "spontaneously organized" trade associations, and therefore inside some trade associations, there has occurred the situation of the loose management and unbalanced development. Although the trade association relying on the pillar industries of Yueqing has developed comparatively in a standard manner and has complete systems, the trade associations of small industries only exists in name, which cannot undertake the responsibility of serving the enterprises and promoting the industry development. The main problems are as follows:1. The current trade association management system needs improvement,2. The big enterprise in the trade association gets elected as chairman by taking its capital advantage, and helps itself become the leader in the industry and obtain the intangible assets and monopoly profit, 3. The original advantages of the private enterprises of Yueqing are gradually reducing, and the government and trade association must consider how to help these private enterprises to grow healthily,4. There is no special law designed for the trade association in China, and the trade association is in an embarrassed place in the market, which is not good for its activities.In the past, the government intervened market excessively, but it has gradually quitted the market competition and carried on macroscopic readjustment and control, and it will provide a steady social environment and loose policy government for the development of the trade association. The development of the trade association will bring benefits for the transformation and upgrading of the private enterprises. This dissertation will put forward the measures for promoting the development of trade associations of Yueqing city as follows:1. To further clarify the nature, position and role of the trade association,2. To rectify the relations between the trade association and the government,3. To build the professional staff of the trade association,4. To guide the CPC activities of the trade association.