With a comparative analysis on the monopoly and non-monopoly system of Chinese Salt Monopoly, the author believes a competitive margin can be earned through improving the management of owner and perfecting its value chain within an open market. The paper proposes an innovation model in order to give some constructive suggestions regarding the next reform of the Chinese salt industry. Simultaneously, the author references the use of the Balanced Scorecard and the DEA evaluation mechanism. By doing so, it enables us to pinpoint the issues on reforming the system. Key words: China Salt, Salt Monopoly, Innovation, Evaluation
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