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last November， a decision on major issues concerning comprehensively deepening China’s reform was adopted at the Third Plenary Session of the 18th Communist Party of China （CPC） Central Committee. The document states that the general goal of the reform is to improve and develop socialism with Chinese characteristics， and to promote the modernization of the national governance system and its capacity.
As a result， governance modernization became a major topic of discussion during this year’s full sessions of the National People’s Congress （NPC）， China’s top legislature， and the National Committee of the Chinese People’s Political Consultative Conference （CPPCC）， the national advisory body of the country.
A critical time
“Pushing forward the modernization of the national governance system and capacity is a choice that has been made in response to historical trends，” said Zhou Wenzhang.
Zhou told Beijing Review that China has entered a new historical stage of reform and development， which is a critical point for the transformation of government functions. Confronted with increasing social conflicts and risks， severe challenges in fighting against corruption and a lack of strict and effective constraints on the exercise of power， it is difficult for the country to continue to maintain long-term social stability through the existing administrative control mindset， he added.
“The modernization of the governance system is an important issue with far-reaching historical and practical significance，” commented Zhou Mingwei.
At present， Chinese society and the country’s economic development model have become increasingly diversified. In this situation， the original management system does not work well， so a new philosophy of governance should be developed to meet the needs of today， Zhou Mingwei said.
Zhou added that it is the right time to concentrate on governance modernization. He said that in the more than 30 years of reform and opening up， China has grown faster and solved more complicated problems than other countries. “The experience China has accumulated in the process will be indispensable during the modernization drive，” he noted.
Chi Fulin told Beijing Review that modern governance philosophy and capacity will be the foundation upon which the modernization of the nation as a whole is built.
Chi said that to achieve this modernization， well-planned institutional arrangements should be put in place first for the functions of the government， market and society and sound public order should be established. Chi stressed that the people’s status as the master of the country should be guaranteed.“The Constitution and the laws should be the supreme authority in public governance so that everyone is equal in front of the law，” he commented. “Social stability and social order should be effectively maintained. Chi added that there should also be coordination between central and local governments and between the roles of the government and society.
According to Chi， three tasks will need to be accomplished to push forward governance modernization. First， the rule of law should be enhanced， judicial and procuratori- al powers should be exercised independently according to law， and administrative interference into the judicial process should be avoided. Second， on the basis of delegating， dividing and restricting power， the government should shift to providing public services and focus on establishing efficient governance structures. Third， the government should invigorate social organizations and help them enhance self-development capacity， spur the growth of non-profit organizations， promote the transformation of quasi-official social organizations， and encourage social organizations to participate in public affairs， so as to prevent and resolve social conflicts.
Market roles
Pushing forward the modernization of the national governance system and its capacity will lead to the deepening of administrative system reform and the transformation of government functions， Zhou Wenzhang said.
Since its inception last March， the current Chinese Central Government has focused on transforming government functions， as well as streamlining administration and delegating power to lower-level governments. It has greatly reduced administrative examination and approval procedures and reformed the business registration system so as to invigorate the market.
Official statistics show that in 2013， the number of newly registered businesses increased by 27.6 percent nationwide and private investment increased to 63 percent of the country’s total investment.
In his government work report to this year’s NPC session， Premier Li Keqiang stressed the need for making breakthroughs in reform in important areas. He pledged to further streamline administration and delegate more power to lower-level governments. Other reform measures include abolishing or simplifying preliminary review and approval procedures， releasing a list of all items requiring government review and approval， and reforming the business registration system， according to Li. Too many preliminary review and approval procedures and lack of market oversight can inhibit market vitality and fair competition， Chi commented. He suggested strengthening regulation to correct market failures.
Hou yunchun told Beijing Review that economic restructuring is the priority for comprehensively deepening China’s reform. How to properly handle the relations between the government and the market is a significant challenge for the modernization of the governance system， according to him.
Hou admitted that in the past， administrative power played too big a role in directly allocating resources and was too deeply involved in economic activities. He said that the government should allow the market and society to take care of everything that would not be best handled by the state.
Chi said that the recognition of the market’s decisive role in allocating resources in the CPC Central Committee’s decision on comprehensively deepening reform represents a historical breakthrough. He said that the governmentdominated economic growth model should be ended， and development should not be primarily measured by the GDP.
Chi called for the establishment of a macro-control system oriented toward fair competition. He said that macro-control is merely a short-term tool that should not be used routinely； otherwise， any macro-policy will displace the role of the market， and could seriously distort the allocation of resources.
A new kind of government
China’s government is transforming into a lawbased and service-oriented one， and is looking to engage businesses and social organizations in providing public services， according to CIPG President Zhou Mingwei.
However， many deep-seated problems should be solved in the process. For instance， according to Chi， laws are needed to restrict administrative power and strengthen market regulation.
Zhou Wenzhang said that there are several obstacles to building a law-based and serviceoriented government in China， including a lack of governance capacity， the existence of vested interest groups and resistance from the traditional governance model under which the government is both a referee and a player.
In this year’s government work report， Premier Li said， “We should， in keeping with the requirements for modernizing the country’s governance system and governance capacity， speed up the building of a law- based， innovative and clean government， enhance its credibility and law-enforcement capability， and strive to provide high-quality and efficient services to the people.”
He pledged to implement a basic strategy of law-based governance， act in accordance with the law in all government work， and be guided by law in both thinking and action while performing the government’s duties.
Today’s social structure is complex， and governance should be law-based， Hou Xinyi commented. He said that the government’s power should come from the law， and be both protected and restricted by law.
“The transition from rule of man to rule of law is revolutionary for the government，” Zhou Wenzhang stressed.
As a result， governance modernization became a major topic of discussion during this year’s full sessions of the National People’s Congress （NPC）， China’s top legislature， and the National Committee of the Chinese People’s Political Consultative Conference （CPPCC）， the national advisory body of the country.
A critical time
“Pushing forward the modernization of the national governance system and capacity is a choice that has been made in response to historical trends，” said Zhou Wenzhang.
Zhou told Beijing Review that China has entered a new historical stage of reform and development， which is a critical point for the transformation of government functions. Confronted with increasing social conflicts and risks， severe challenges in fighting against corruption and a lack of strict and effective constraints on the exercise of power， it is difficult for the country to continue to maintain long-term social stability through the existing administrative control mindset， he added.
“The modernization of the governance system is an important issue with far-reaching historical and practical significance，” commented Zhou Mingwei.
At present， Chinese society and the country’s economic development model have become increasingly diversified. In this situation， the original management system does not work well， so a new philosophy of governance should be developed to meet the needs of today， Zhou Mingwei said.
Zhou added that it is the right time to concentrate on governance modernization. He said that in the more than 30 years of reform and opening up， China has grown faster and solved more complicated problems than other countries. “The experience China has accumulated in the process will be indispensable during the modernization drive，” he noted.
Chi Fulin told Beijing Review that modern governance philosophy and capacity will be the foundation upon which the modernization of the nation as a whole is built.
Chi said that to achieve this modernization， well-planned institutional arrangements should be put in place first for the functions of the government， market and society and sound public order should be established. Chi stressed that the people’s status as the master of the country should be guaranteed.“The Constitution and the laws should be the supreme authority in public governance so that everyone is equal in front of the law，” he commented. “Social stability and social order should be effectively maintained. Chi added that there should also be coordination between central and local governments and between the roles of the government and society.
According to Chi， three tasks will need to be accomplished to push forward governance modernization. First， the rule of law should be enhanced， judicial and procuratori- al powers should be exercised independently according to law， and administrative interference into the judicial process should be avoided. Second， on the basis of delegating， dividing and restricting power， the government should shift to providing public services and focus on establishing efficient governance structures. Third， the government should invigorate social organizations and help them enhance self-development capacity， spur the growth of non-profit organizations， promote the transformation of quasi-official social organizations， and encourage social organizations to participate in public affairs， so as to prevent and resolve social conflicts.
Market roles
Pushing forward the modernization of the national governance system and its capacity will lead to the deepening of administrative system reform and the transformation of government functions， Zhou Wenzhang said.
Since its inception last March， the current Chinese Central Government has focused on transforming government functions， as well as streamlining administration and delegating power to lower-level governments. It has greatly reduced administrative examination and approval procedures and reformed the business registration system so as to invigorate the market.
Official statistics show that in 2013， the number of newly registered businesses increased by 27.6 percent nationwide and private investment increased to 63 percent of the country’s total investment.
In his government work report to this year’s NPC session， Premier Li Keqiang stressed the need for making breakthroughs in reform in important areas. He pledged to further streamline administration and delegate more power to lower-level governments. Other reform measures include abolishing or simplifying preliminary review and approval procedures， releasing a list of all items requiring government review and approval， and reforming the business registration system， according to Li. Too many preliminary review and approval procedures and lack of market oversight can inhibit market vitality and fair competition， Chi commented. He suggested strengthening regulation to correct market failures.
Hou yunchun told Beijing Review that economic restructuring is the priority for comprehensively deepening China’s reform. How to properly handle the relations between the government and the market is a significant challenge for the modernization of the governance system， according to him.
Hou admitted that in the past， administrative power played too big a role in directly allocating resources and was too deeply involved in economic activities. He said that the government should allow the market and society to take care of everything that would not be best handled by the state.
Chi said that the recognition of the market’s decisive role in allocating resources in the CPC Central Committee’s decision on comprehensively deepening reform represents a historical breakthrough. He said that the governmentdominated economic growth model should be ended， and development should not be primarily measured by the GDP.
Chi called for the establishment of a macro-control system oriented toward fair competition. He said that macro-control is merely a short-term tool that should not be used routinely； otherwise， any macro-policy will displace the role of the market， and could seriously distort the allocation of resources.
A new kind of government
China’s government is transforming into a lawbased and service-oriented one， and is looking to engage businesses and social organizations in providing public services， according to CIPG President Zhou Mingwei.
However， many deep-seated problems should be solved in the process. For instance， according to Chi， laws are needed to restrict administrative power and strengthen market regulation.
Zhou Wenzhang said that there are several obstacles to building a law-based and serviceoriented government in China， including a lack of governance capacity， the existence of vested interest groups and resistance from the traditional governance model under which the government is both a referee and a player.
In this year’s government work report， Premier Li said， “We should， in keeping with the requirements for modernizing the country’s governance system and governance capacity， speed up the building of a law- based， innovative and clean government， enhance its credibility and law-enforcement capability， and strive to provide high-quality and efficient services to the people.”
He pledged to implement a basic strategy of law-based governance， act in accordance with the law in all government work， and be guided by law in both thinking and action while performing the government’s duties.
Today’s social structure is complex， and governance should be law-based， Hou Xinyi commented. He said that the government’s power should come from the law， and be both protected and restricted by law.
“The transition from rule of man to rule of law is revolutionary for the government，” Zhou Wenzhang stressed.