Salt iodization for the prevention and treatment of endemic goiter began in the mid-19th century in the Western countries, this living iodine supplementation measures to the early 20th century gradually accepted by the people, first used in Switzerland and the United States in the 1920s, and then in the 1940s by the introduction of New Zealand. In China, iodized salt was produced in Yunnan Province in 1945, and in the 1960s it was promoted in some provinces. At the end of the twentieth century, iodized salt was consumed nationwide, and the slogan of "universal salt iodization" was put forward. The Chinese government has always attached great importance to people's livelihood, salt iodization, improve the coverage of iodized salt, improve the overall quality of the Chinese nation, the comprehensive elimination of iodine deficiency disease is China's salt industry is incumbent upon the social responsibility.　　(B) China's national conditions dictate that salt must be implemented in the state franchise From a worldwide perspective, universal salt iodization has three ways: mandatory legislation, consumer self-selection, the state franchise. From the current situation in China, the state franchise is the most effective means.　　1. Compulsory legislation regulation in our country is too early. Compulsory legislation refers to the state through legislation mandatory salt iodization, the establishment of a market-based mechanism, the state strictly regulate the salt system. Enterprises entering the salt industry must be licensed by the government, the government strictly regulates the quality and price of salt on the market, the industry operates on the basis of the market mechanism to encourage effective competition. However, as the rule of law is now being gradually promoted in China and marketization has not yet matured, once this is advanced prematurely in the form of legislation, it will not only increase the operating costs of the administration and the market, but will also make the law a mere formality.　　2. Consumer self-selection in China is not yet mature. From an economic point of view, consumers choose iodized salt from the market is the most ideal one. But the current domestic market supply exceeds demand, consumers are at a disadvantage of information, can not intuitively determine whether the salt is qualified, whether iodized, etc.; In addition, salt is a special public **** product, carrying the task of eliminating disease through iodization, therefore, the supply of iodized salt has a strong social service characteristics, can not be purely consumer self-selection as the orientation.　　3. The national franchise is currently the most realistic mechanism in China. First, our franchise system has absorbed the experience of successful foreign countries and has achieved great results. Secondly, in the case where the market does not have a mature business entity (one or several large companies dominate the production and operation of industrial salt and table salt nationwide); where there is no mature consumer group (consumers have a strong sense of health and self-protection, and can consciously choose to consume iodized salt); and where there is a lack of effective market management (the governmental market management department can effectively guarantee the supply of qualified iodized salt), the state franchise is the most realistic and effective mechanism. (iii) The state monopoly is the most realistic and effective mechanism.　　(iii) Differences between the state monopoly of salt and the monopoly and unification of government and enterprises 1. Monopoly refers to the exclusive or joint control by a large enterprise or a small number of large enterprises over the production and sale of products in the corresponding sector on the basis of the high degree of development of production concentration and capital concentration, with the aim of controlling the market and obtaining excessive profits. The salt monopoly refers to the exclusive or joint control of the production and sale of salt by a large salt company or a few large salt companies in order to obtain excessive profits.　　This is not the case with the salt state monopoly. First, the salt state monopoly is not a salt industry monopoly, and multiple varieties of salt and industrial salt are fully competitive. Salt monopoly approach" (the Chinese people's *** and the State Council Decree No. 197) Chapter I General Provisions of the second article: the State salt franchise management. The salt referred to in these Measures refers to salt used for direct consumption and food preparation. Secondly, the purpose of the State monopoly on salt is not to monopolize the market in order to reap high profits, but rather to fulfil the political task of salt iodization and the social responsibility of universal salt iodization. Salt franchise measures (the Chinese people *** and the State Council Decree No. 197) Chapter I General Provisions of the first article of Article 3: In order to strengthen the management of salt, to ensure the effective implementation of salt iodization, to protect the health of citizens, the formulation of these measures.　　2. Salt state monopoly and government-enterprise integration. Government-enterprise unity refers to both the national administrative authority, but also at the same time have the right to operate the industry unit. It is characterized by a high degree of monopoly, exclusivity and lack of competition. In this case, the state administrative department is funded by the treasury, and the operating department is self-supporting.　　Salt state monopoly is the separation of the two powers. Salt state franchise is the government salt competent authority entrusted salt industry company operation, salt industry company in accordance with the requirements of the competent authority to complete the production, storage and transportation and sales of salt. Article 4 of Chapter 1 of the General Provisions of the Measures for the Exclusivity of Salt (Decree No. 197 of the State Council of the People's Republic of China) stipulates that the salt industry authority authorized by the State Council (hereinafter referred to as the State Council's salt industry authority) is responsible for the management of the national salt exclusivity. Salt industry authorities authorized by local people's governments at or above the county level (hereinafter referred to as salt industry authorities of local people's governments at or above the county level) are responsible for the management of salt monopoly work within their administrative areas. Currently, the national salt management organization is the Salt Industry Office of the National Development and Reform Commission, and the local salt management organization is the Salt Affairs Bureau, which is only given the establishment and has no financial allocation. Chapter II salt production, Article 5 provides: the state of salt production system. Non-salt designated production enterprises shall not produce salt. The designated salt production enterprises by the provinces, autonomous regions and municipalities directly under the Central People's Government salt industry authorities, reported to the State Council salt industry authorities for approval. Article VII provides that: the state of salt production to implement directive program management. Chapter III of the salt sales Article IX provides that: the state's allocation of salt allocation of the implementation of directive program management. Salt annual allocation plan issued by the State Council administrative department in charge of planning, the State Council salt industry authorities to organize and implement. Chapter I General Provisions, Article 3 provides that: These Measures shall apply to the production, storage, transportation and sale of salt within the territory of the Chinese People's Republic *** and the State.　　Therefore, the salt state franchise is a special industry entrusted with the authorization of the operation, rather than the unity of government and enterprise. Under the conditions of a market economy, the franchise, as a special mode of operation of government intervention in trade, can only have a business subject. China's current salt franchise system also carries a certain planned economy, multiple business subjects, multiple departments with the management of the situation can only be a transitional phenomenon during the period of transition, not only has a higher management costs, but also very fragile, it is difficult to adapt to the new period of the market economy of the general environment. From the distribution of salt resources and the homogeneous characteristics of salt, China's salt industry is the most suitable industry for organizing large-scale production and operation. From the perspective of consolidating the monopoly and rationalizing the system, in order to maintain a reasonable production capacity, especially to change the situation of disorderly competition among salt-making enterprises, efforts should be made in industrial organization and enterprise organization, i.e., through reforms, to set up a number of nationwide enterprise groups throughout the whole industry and to form a unified China Salt Industry Corporation, which will become a "six-unified" salt monopoly of production, supply and marketing of human resources, finance and property. "The main body of the salt monopoly.　　(A) the direction of reform: two adhere to the three unified 1, "two adhere to" refers to adhere to the state franchise, adhere to the separation of government and enterprises. First, adhere to the state franchise. Second, adhere to the separation of government and enterprises. Separation of government and enterprises refers to the complete separation of the regulatory and operational functions of salt. According to the actual situation, the salt regulatory functions are gradually separated from the salt companies. The health, quality, market and law enforcement work involved in salt management are assigned to the relevant functional departments. Salt iodization, because it is related to people's health, is the overall responsibility of the relevant state departments.　　2, "three unified" refers to the unification of franchise assets, unified management, unified salt brand. First, the unified franchise assets. The state to take the administrative way to other provinces, districts, municipalities assets into the China National Salt Industry Corporation, due to the small base, the local economic impact is not great, but can effectively realize the salt national franchise. On the basis of unifying the assets of the salt monopoly, China National Salt Industry Corporation, on the one hand, ensures the distribution of qualified iodized salt to all parts of the country. On the other hand, as the leading enterprise of the national salt industry assets, it has both the ability and function of capital operation, which is conducive to realizing the effective value preservation and appreciation of the state-owned assets in the salt industry. Secondly, unified operation and management. China National Salt Industry Corporation (CNSIC) takes capital as a link to realize joint operation with its subsidiaries, introduces relevant strategic investors, actively pushes forward the shareholding reform, implements the overall listing of the main industry, and creates a perfect salt industry chain to ensure the effective coverage of qualified iodized salt across the country. Again, unify the salt brand. Based on the unification of assets, management, production and marketing, the "China Salt" brand will be gradually formed to ensure the qualification rate and popularization rate of iodized salt, and to reduce the cost of people's choice of salt.　　(b) In order to realize the two insisting on the three unification, it is suggested that the salt industry system adopt seven aspects of reform: Firstly, the implementation of the national monopoly policy. First, improve the current National Development and Reform Commission Salt Administration Office of the relevant functions, assume all the salt administrative functions, and entrust the China National Salt Industry Corporation to act on behalf of supervision. Secondly, the assets of provincial and municipal wholesale enterprises that have not entered the China National Salt Industry Corporation can be administratively transferred to cancel the county-level legal person to operate at the municipal level and manage at the provincial level. Finally, for private enterprises in the salt production enterprises, by the China National Salt Industry Corporation to holdings, equity participation and other ways to implement the integration of production and marketing, according to the regional integration into a few large production groups, enhance industrial concentration. At the same time, the formation of a number of large-scale marketing centers by region, reduce the cost of marketing, to achieve the effect of controlling the end.　　The second is to establish a national franchise brand. Authorize the China National Salt Industry Corporation to unify the acquisition, storage and operation of iodized salt, and gradually establish a unified national brand of Chinese salt. Can start with the unified allocation of salt across the provinces, after the integration of national assets, the implementation of a unified "China Salt" brand in the country.　　Third, promote equity diversification in the salt industry. China National Salt Industry Corporation in the integration process, should gradually change the status quo of the single state-owned capital structure of salt enterprises. Relevant strategic investors can be introduced to carry out property rights diversification reform. When conditions are ripe, restructuring and listing, enhance the operational vitality and competitiveness of the salt industry enterprises, cultivate a mature market operating body, in order to prepare for the future liberalization of salt monopoly and face foreign competition.　　Fourth, promote the development of multi-species salt. Salt industry to develop multiple varieties of salt as a breakthrough, to promote the upgrading of the salt industry. It should start to revise the special regulations on multi-variety salt, reformulate standards and audit qualifications, and gradually cancel the government pricing of multi-variety salt. Within the salt monopoly system, China National Salt Industry Corporation should develop multi-variety salt by the relevant production enterprises according to the degree of resource allocation and effectiveness, and the State-owned Assets Supervision and Administration Commission of the State Council should incorporate this task into the important performance appraisal content.　　Fifth, the establishment of iodized salt supply compensation mechanism. Salt franchise to learn from the practice of postal compensation, postal compensation implemented by the China Post Group Corporation, salt universal compensation can also be organized by the China National Salt Industry Corporation.　　Sixth, as soon as possible to introduce the Salt Monopoly Law. The State Council in 1990 issued the "salt industry management regulations" was formulated in the planned economy, hindering fair competition, should be repealed. 1996 issued the "salt monopoly approach" in some of the content does not adapt to the market economy should be revised in a timely manner. At the same time, it is suggested that the National People's Congress start to establish the Salt Monopoly Law.　　Seventh, promote the full marketization of industrial salt. Comprehensively liberalize the operation of industrial salt, allow production and marketing to meet directly, abolish the illegal implementation of salt products in some areas of the permitted transport permits and permitted transport stamps, and realize the comprehensive marketization of industrial salt production and operation. Whether it is China National Salt Industry Corporation, or other salt companies, should take market behavior to integrate industrial salt resources, improve the industrial chain, expand the variety of industrial salt, and realize the deep processing of industrial salt. All mergers, unions and reorganizations should be market-oriented to deepen the reform.