Research On Vertical Restraint Competition Behaviors Of China’s Auto Industry

Currently, auto market is in fierce competition in the worldwide scope. No one can accurately count the numbers of vehicle brands in the world. In face of the complicated auto market, how to improve its management and regulation and let it be the economic "perpetual motion machine" become a problem faced by every country. For a long time,people’s attention to the automobile industry has always been focused on the horizontal restriction of competition, as well as its legal and economic constraints, while ignoring the bad effects caused by vertical restraints of competition. The vertical limit competition behaviors of the automobile industry not only damage the operation autonomy of the channel distributors, but also damage the right of consumers to choose cars and obtain the competitive price benefit, which lead to the high cost of after-sale service, so it must be strictly regulated. In China, Antitrust Law, known as the "economic constitution", has been promulgated and implemented for 7 years. How to change the present chaos in automobile industry is becoming the critical problem in China. As the most important automobile market in the world, China learns lessons and experience from other countries, it should also take the situation of our country into consideration in the same time. This article analyzes the path of healthy development of the automobile industry from the choice of industrial policy and competition policy perspective. Through the analysis of experiences in the developed contries, combined with the present situation of our country, the paper adopts comparative analysis and empirical analysis to discuss the policy choice of China’s auto industry as well as the relevant anti-monopoly regulation in the following four chapters.This paper is divided into six parts, the first part introduces the background, the research status at home and abroad, the content, methods, innovation and deficiencies. In the second part, the paper begins with the basic theory of vertical restraints of competition,and introduces the form and the economic effect of vertical restraints of competition. In the third part, the paper introduces the general situation of China’s auto industry’s verticalrestriction of competition, and the form and harm of the automobile industry caused by restrict competition behavior. Based on the development of foreign auto industry as well as the relevant industrial policies they take, The fourth part analyzes policy options in various perspectives. In the fifth part, according to the foreign competition policy and comparison of current situation between the domestic and foreign countries, the choice of China’s competition policy, governance mode and policy recommendations of vertical restraints competition behavior are put forward. The sixth part is the conclusion and prospect.