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After rapid growth over the last thirty years,China economy now faces severe challenges,which are forcing the country to transform its model of economic development and adjust its economic structure.Distribution is on the top end of the value chain and has strategic significance for model transformation and structural adjustment.One of the importer reasons for China’s dilemma in model transformation and structural adjustment is the weak distribution capability of firms and society overall and the lack of control over distribution channels.China should implement a distribution strategy,strengthen construction of distribution capacity for firms and society,and promote the transformation of the economic development model and the comprehensive upgrading of the economic structure.