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By Xuan Xiaowei, Research Team on “Strategic Policies Leading the New Normal of Economic Development”, DRC

Research Report No. 93, 2017 (Total. 5168) 2017-8-16

Abstract: The main characteristics of China’s existing governance model are as follows. Following the institutional arrangements made by the Central Government, various levels of governments have taken economic construction as the major work and vied with each other to conduct governance in the economic field through government-led elite governance and investment-driven model. Under the new normal, the overall adjustment of China’s economic operation calls for the transformation of the national governance pattern. Governance modernization is the general guideline for the governance transformation mode under the new normal. We need to abide by the universal law of modern social governance, form well-circumscribed social entities in different social sectors with well-defined power and responsibility and separate government administration from the management of enterprises, state assets, public institutions and social organizations. The main measures for the transformation of governance model under the new norm include: 1. we need to change the government-led model toward government guidance; 2. we need to strengthen the democratic oversight on government administration and flesh out the incentive mechanism over the performance of government employees; and 3. we need to improve the relations between the central and local governments and form a model in which the central and local governments assume respective responsibilities for governance with well-defined power and responsibility and law-based regulation.

Key words: governance model, new normal, transformation