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Commodity
Market
In order to extend the
regulatory function of the market, the state has gradually reduced
the categories of products for planned production, eliminated the
restriction that enterprises were only allowed to engage in production
but not in business operation, and abolished the practice of the state
fixing commodity prices. As a result, the rights of enterprises to
purchase, produce and sell have been extended. Enterprises may organize
and establish wholesale markets and trading centers; the wholesale
and retail commercial systems are being restructured; and the non-public
economy is allowed to take part in commercial activities.
Through the reform,
the unitary pattern in which the public economy monopolized commercial
activities has been broken up step by step, and the commodity market
pattern of diversified economic elements and operation forms with
the public ownership of commerce as the main body has been established.
Before 1978, there were 791 products belonging to means of production
allocated according to state plans, but now only five of them remain,
and the rest have entered the market. Now, department stores, supermarkets
and chain stores are scattered everywhere in both rural and urban
areas. In 1999, China had 1.800 China stores, over 2.000 various
flea markets, over 1.000 leasing enterprises, and over 1.000 auction
enterprises. Meanwhile electronic commercial business has developed
rapidly; the agent system has been widely adopted by various trades;
great progress has been made in the circulation and delivery of
commodities, and modern material circulation enterprises have replaced
traditional storage and transport enterprises. A great variety of
food, clothing and other commodities satisfies the needs of consumers.
The total market sales grow with each passing year. In 1999, the
rural market achieved 1,204.3 billion yuan-worth of sales of consumer
goods, 11.4 times the figure in 1978; the urban market achieved
1,909.2 billion yuan-worth of sales of consumer goods, 37.8 times
the figure in 1978. At the same time a buyer??s market has appeared
in the commodities sector in which the supply and demand of most
commodities are kept in balance, the supply of some goods exceeds
the demand, price trends are steady, and the guiding function of
the market for producers has been strengthened.
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