DPTAG is a quasi-governmental organization, a public institution with a number of administrative functions… You could say it is non-profit but it is highly profitable, and has been for a long time. We refer to this kind of institution as a "Mistress Agency" – in the traditional planned economy they were very effective, in the current market economy they are also flourishing.

Observer: They're using public trust in government to participate in the market and make a profit.

Li: Even more importantly, they are using trust in government to expand the functions of government in the market, and these functions can be incredibly troubling, because the market doesn't actually require them. Essentially, DPTAG ought to provide market monitoring, surveillance, and oversight, but it has completely exceeded this role and is trading its own trademark to obtain huge commercial profits, relying on trust in government to peddle a product and make profit, in effect simultaneously turning public trust in government into a product itself.

Worse still is that the government lacks any structure for managing this kind of popular trust, and this undermines the host of other agencies that are trading in trust in government. This kind of attitude makes it inevitable that the entire market, society, and consumer population will not trust government-- the public will harbor doubts about laws, managers involved in the game, and honest regulators alike.

Actually, some manufacturers are perfectly aware that in a perfect market economy these trademarks should not be sold, but remain keen to obtain them. Why is this? Because they've discovered one of Chinese society's best moneymaking secrets: if government trust can be sold along with your product, you will typically get a good price.

Observer: Just as product labels often include "Designated product of Zhongnanhai" or "Designated product of the Great Hall of the People" and other similar advertisements.

Li: Right. This is such and such from a state banquet, that is a state liquor of choice – on the market it will sell like wildfire because a part of the sale is confidence in government.

Observer: Then what kind of system can be put in place to address the abuse of trust in government?

Li: It's simple – the government must articulate the boundaries between four distinct categories: First, between central and local government; second, between government departments; third, between government and the market; and fourth, between government and market actors (including the public and enterprises). If the government can clearly define boundaries between these four, then the government's role is clear and recovery of trust in government will be easy. Currently, the problem is simply that these distinctions are unclear, they're all mixed together, and in the long run trust in government will continue to decline.