The failure of government regulation will constrain the development of the logistics  market

The government's regulation of the logistics market is not always effective,  and in many cases it is inefficient, such as market access regulations that  cannot guarantee the realization of supply-demand balance. The government imposes  restrictions on the entry of foreign logistics companies, while domestic logistics  companies find it difficult to provide comprehensive logistics services in  the short term. This may result in a shortage of high-quality and complete  logistics services in the logistics market, and an excess of low-quality logistics  services. The failure of government regulation of the logistics market generally  occurs in two situations: one is the government's transitional intervention  in the logistics market; The second issue is insufficient government regulation  of the logistics market. Both of these situations will constrain the development  of the logistics market.

2 Preconditions for Effective Government Regulation

Effective implementation of government regulation is not an easy task, and  it also has many prerequisites. For example, the government has sufficient  predictive ability for the development of the logistics market; The government  has sufficient information to formulate regulatory measures; The measures implemented  by the government to regulate are aimed at maximizing the overall social benefits,  among others. However, the government's predictive ability is limited and subject  to certain conditions. Obtaining complete information poses significant obstacles,  and the government is also subject to interference from interests.

The role of government preferences in institutional supply cannot be underestimated

From the perspective of regulation, factors that affect the government's provision  of institutional arrangements, in addition to special preferences such as "maintaining  stable market operations" and preventing excessive losses and bankruptcies  of logistics industry enterprises, also have a significant impact on the government's  preference for "power". Various signs indicate that China's market  regulation targets are evolving towards "rent-seeking", and market  regulation has a clear "rent-seeking" nature. This is one of the  obstacles to building a sound logistics market economy system.