China resolves to check govt power(2)

TOP-DOWN REFORMS

But there are signs that efforts to foster a more rational relationship between government and the market will be accelerated under the reign of the new leadership.

At a press conference held in March right after the usher-in of the new leadership, Premier Li Keqiang compared reducing government power to "cutting one's own wrist" to demonstrate his resolve to transform government roles.

The metaphor echoed a Chinese legend in which a courageous warrior severed his snake-bitten wrist to keep the poison from spreading all over his body.

During a September economic forum, Li stressed that the key to economic reform is to balance government, market and society, and let the market play its role to induce more vitality.

Past years have seen consistent efforts in China to adjust the role of the government. A total of seven institutional reforms of the country's central authorities have been carried out since China started its reform and opening-up drives in 1978.

Though noticeable progress has been made during this process, analysts believe there is a long way to go for Chinese government to become a de facto limited government.

"Today's reform is more difficult compared to 10 years ago," said Ding Yuanzhu, a researcher from the China National School of Administration, citing more entrenched interest groups.

The central government has scrapped more than 200 administrative approval items this year, but it still holds another 1,500. Approval items in the hands of local governments stand at as many as 17,000.

To target any of these powers means that the interests of some groups will inevitably be hurt, which puts the reformers' determination and courage to the test, according to Ding.

"Reform at the present stage is in essence carrying out reforms on the reformers themselves," said Chi. "By setting the brave warrior as an example, Chinese reformers have to emulate his courage and decisiveness, without which reforms are not likely to make headway."

"The key lies in reforming the mindset of the cadre team," believes Ding. The spirit of reforms will percolate down and gain traction when cadres really understand and implement the reforms demanded by the central government, he added.