Industry Association Positions Three Problems to Influence Development

The SASAC Trade Association Office recently released a survey report of the latest industry association. While affirming the role of the industry association, the report highlights three issues that affect the construction and development of industry associations. To address these issues, the report proposes a standardized development industry. Association's recommendations.
This report was formed on the basis of a random selection of 75 of the more than 300 industry associations managed by the SASAC. The report first summarized and affirmed the role played by industry associations over the years, including focusing on responding to corporate demands; promoting the implementation of the scientific concept of development; participating in the formulation and implementation of macro-control and industrial policies; implementing industry autonomy management; Coordinated response to international trade disputes; to help companies expand the market; to guide the scientific and technological progress and structural adjustment of industrial enterprises; to promote the establishment of social integrity system, to clean up the market environment, and promote the implementation of corporate social responsibility;
The function of the association has gradually become clear
According to the report, through reform and development, the industry association has gradually found a direction of development from the beginning of its establishment and has gradually found its direction of development. With a clear functional orientation, it has established a preliminary and standardized internal governance structure.
The first is that most associations have placed institutional building on an important position. In the construction of the association itself, most associations have established a complete set of system and even made innovations. China Sewing Machinery Association has set up a financial auditing and supervision agency, supervised the association’s expenditures and expenditures, and strengthened democratic management and democratic supervision measures.
The improvement of institution construction has greatly improved the living conditions of the association. The China Shipbreaking Industry Association and China Petroleum and Chemicals Survey and Design Association have a long-term perspective in terms of expenditures and expenditures. They have successfully crossed the industry's low period and ushered in a good situation in which the industry has developed rapidly and the association has accumulated more. Five years ago, many association organizations on the verge of survival crisis have now embarked on a journey of healthy development. Their ability to guide and coordinate the development of the industry has significantly increased. The services provided by the Association to its members have been not limited to the primary forms of information exchange and the creation of exhibitions, but they have also made efforts in pioneering enterprises in market development, industry self-discipline, market access, safeguarding industrial rights and interests, and handling international trade frictions. Service quality.
Not only reflects the industry, the members of the appeal, the Association's understanding has changed significantly, while the industry in regulating the behavior of enterprises, maintaining market order, the effective exercise of the industry enterprise autonomy management function. China Construction Glass and Industrial Glass Association, in order to curb unfair competition and other unfair competition among enterprises, based on the industry average cost, according to the "Price Law" and "Unfair Competition Law" and related administrative regulations, according to the law to maintain market order, Stop low-priced dumping. The China Chemical Mining Association, the China Template Association, and the China Association for the Utilization of Scrap Steel have separately formulated industry self-regulation measures or industry access standards.
The report mentioned that in recent years, with the development of the industry and the diversification of member companies' operations, many associations have also expanded and extended their services. Outstanding performance in the production area of ​​the association to the circulation, R & D two extensions, the establishment of the appropriate branches, and circulation in the area of ​​the association is also expanding to the field of production.
Three types of problems affect development
Although the industry associations have a good development situation, the report also believes that there are currently three major issues that affect the construction and development of industry associations.
The first is that the internal governance of the association is not perfect. The report believes that the concept and service mechanism of the association to transform internal governance is still not perfect, and there are still a large number of associations' internal management and administrative procedures with institutional traces. Moreover, there are many problems in the internal governance of associations affiliated with enterprises and institutions. Some associations are affiliated with enterprises or institutions. Personnel, residence, finances, and activities are attached to affiliated companies. Enterprises will be independent of each other. The association will objectively become a component of the affiliation unit. It lacks independence and cannot fairly represent industrial enterprises. The fundamental interest is also not conducive to the development of the association itself. In addition, insider control also affects the association's democratic autonomy. Individual associations have internal manipulative and “one-size-for-all” situations. The democracy of the association has been greatly challenged.
The report also believes that the external environment for the development of the association is still not ideal, mainly reflected in the handling of the relationship between the association and the government. First, the transfer of government functions and ideas are still not in place. Second, there is a lack of smooth communication channels between the association and the government. The important industry information held by the association cannot be delivered to relevant departments and leaders in a timely manner. Inconsistent opinions with some departmental decisions cannot be delivered. The State Council; the third is the lack of regulation by the government to provide services to the association.
The lag in related policy measures and regulations that promote the development of the association is also a problem. The first is the tax policy that supports the development of industry associations. Take the exhibition and training as an example. After receiving the participation fees and training fees paid by the members, the Association shall pay business tax according to operating income. The rest of the income tax shall be paid after all expenses are paid, and it shall be completely used as a business entity. It is estimated that the tax paid by the association is equivalent to 10% to 15% of the association’s income. The report pointed out that the association is not an enterprise. This kind of tax policy has caused an unreasonable economic burden on the association and does not meet the direction of the party central committee and the State Council to encourage the development of industry organizations.
In addition, the management policies that restrict the association's public issuance of professional publications, the management system of the industry organization system, and the institutional management system of asset preservation and value increase are also lagging behind.
According to the findings of the survey, the Institute for Integration and Conformity has provided several suggestions in the report in order to regulate the development of industry associations.
In addition to strengthening the training and education of association leaders and staff, and organizing industry associations to strengthen public opinion and propaganda work, the SASAC industry association office proposed to proceed with the integration of industry associations. The report suggests that associations that have severely crossed the scope of their business and increase the burden on the company, and whose members are not satisfied with or are not conducive to the healthy development of the industry, begin to integrate. The report stated that this is also the wish of most associations. To do this work carefully and steadily, formulate the necessary working procedures to be in compliance with the relevant regulations of the country, not to conflict with the association's articles of association, and to solicit the opinions of relevant association members in advance.
At the same time, the report also recommended the timely revision of the "Interim Measures for the Administration of SASAC Trade Associations." It is understood that the "Interim Measures for the Administration of the SASAC Trade Associations" issued in 2004 has not fully adapted to the development of the Association at present, and the relevant contents need not be revised. The revised new measures should make new breakthroughs in solving the issue of the independent management of the escrow associations as an independent legal entity and the issue of autonomous management.
The report also stated that the financial department will be asked to provide financial support for the public welfare activities conducted by the association. It is understood that many of the current activities carried out by industry organizations are those of a public service nature. These activities can promote the cooperation and exchanges between industry and enterprises, and reduce government management costs. Therefore, the government should provide financial support for such public welfare activities.

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