China's Circulation Industry, Innovative Research

In the long period after new China was founded, the economy of our country is in the shortage economy from beginning to end, and there were suitable soil for the thought that says " THE THEORY OF NO CIRCULATING" and " PRODUCING IS MORE IMPORTANT THAN CIRCULATING'' to develop. The dominant position was being occupied in the economic thought domain in our country under the economic condition that supply falls short of demand equally. Since the reform and open, we know the importance of circulating more thoroughly, and the position in national economy of the industry circulating is constantly raised. At present, more and more economists and government departments think that circulating is a guide-industry. Some economists insist that the circulating industry do have relation to the security of economy of one country. They even set out to demonstrate the importance of circulating industry at economy safety or the nation level.Certainly, after the reform and open, the circulating industry has developed more greatly and gained many results that are worth commending. The achievements are listed as follows:1, The size of circulating industry had developed.2, The reform of circulating system gained the new progress.3, The steps of modernizaion of circulating industry clearly quickens.4, The circulating industry's open policy quickens its step.5, The contacts between the home and abroad market become more and more closely.6, The circulating patterns with many kinds of economic compositions, many channels and seldom taches are founded.After the reform and open, our country circulating industry is getting better, at the same time there still exist the mass question. The article outlines the shortages of the circulating industry of our country. It points out that the commodity circulation industry is still weak compared with other industries in the national economy, and the commodity circulation industrialization is still fairly lower, and there still exists the very big gap compared with the advanced country. The following question of this industry is still very protruding, and needs us to pay more attention on it.l,The industry form is developed with disequilibrium.2, The gap in urban and rural market enlarges3, No enough employees which are proficient in the vocational work4, The running mechanism should be perfedted.China formally became the member of WTO on December list, 2001. After entering WTO, the economy of our country is being faced the sterner competition that comes from the whole world. The circulating of our country is lashed the largest trade after our country enters the World Trade Organization. Joining the World Trade Organization circulating is facing the great opportunity to develop and also in the front of the awful challenges. The influence that brings to the commodity circulation industry will be long-term and profound. Our country's circulating industry can not suit the intense competition environment in the short period after being open, andin the long run, the circulating industry of our country can suit and make the corresponding adjustment certainly step by step. The negative influence on the industry can weaken step by step also.Thesis is discussed the major theory and history course of industry organization at first chapter, and the market structure - market action - market performance theory system is decided to be used as the main theory to study the project. It is clear and definite that this subject will be researched under the frame of the traditional industry organisation theory. We combine the real circumstances of our country.In second chapter, the conceptions of the circulating industry and the circulating industry organization are clearly and definitely definited. On the basis of the conceptions, the relationship between the circulating industry and the circulating industry organization is studied. The present situation of industry of our country detailedly analyzed in third chapter, the development opportunity and the challenge is studied particularly after our country joined the World Trade Organization. By way of the mass data there is demonstrated that the important position of our country's circulating industry in the final section of this chapter. In the fourth chapter, the present situation of our country's circulating industry is studied under the framework of market structure -market action -market performance theory, and the shortages of our country's circulating industry organization are stressed heavily. The unreasonable places existed in the centralization of the industry, the systematization of the industry, the running mechanism of the industry, and the increasing mechanism of the industry etc. Thesis is discussed the Schumpeter's innovation theory at final chapter, and the policy selection that we can chosen are pointed out form the industry point of view in accordance with solving the shortages of the circulating industry of our country. Moreover, the strategies that should be adopted by the circulating enterprises for development are listed clearly from the enterprise layer in the present economy conditions.In general, this article is attempting to study the development trend of the circulating industry of the world and our country. Then, the policies that our government could be chosen and the strategies that our enterprises should be adopted are pointed out. During research, industry organization theory and innovation theory are adopted. The demonstration method is used as the main way to study. This research is studied under the condition of economic globalization and our joining WTO. This research can be used for reference to the policies selection of our government and strategies selection of the circulating enterprises.From aspect of the circulating industry, the author thinks that the barriers to entering and withdrawing the industry should be reasonably adjusted; the benign enterprise purchases should be led in order to cultivate the large circulating company; the backward economic system should be reformed to perfect the modern enterprise system. From the aspect of the circulating enterprise, strategies should be selected according to theirs resources and skills. The strategies that are fit for enterprise self-circumstances include difference strategy, cost leading strategyand target-focusing strategy etc.