One of the new features of governmental- policy intervention in China's Cotton circulation since the 1880s is the attempts to control and reduce the cotton supply-demand fluctuation through frequent price adjustment made by the system of pricing by the government.This paper will make a case study of the steadiness achieved by the administrative intervention in cotton pricing.Our study indicates that,in dealing with the supply-demand undulation,the adjustment by the government intervention in cotton pricing, compared with that by the market, has shown its lagness instead of any perspectiveness,hence the greater fluctuation.This treatise will provide support in analyzing the policies for the new round of reform of cotton commercialization carried out since 1999.In addition, the article has an analytical significance in case study, in the sense of such general problems as the efficiency of government intervention in the market; the rational demarcation between the role played by the government and by the market without any intervention.
