Balancing Government and Market

Oriental Outlook
March 14

The government's function in economic activities has always been a focus of attention.

In a market economy, how should the government play its role? What is the key functions of the state and market? Such questions have raised concerns for over 30 years in China.

Whether the relationship between the government and market can be well settled would decide whether the new round of institutional reforms of the government is successful.

After reform and opening up, China has realized that the government and market should complement rather than combat each other.

On the one hand, the state should not let the market go unchecked. In the late 1980s, local governments put the resource industry completely in the hands of the market, resulting in small mines everywhere, the ill consequences of which still linger today.

On the other hand, government intervention should be carried out properly. The function of the market is yet not strong enough while the government remains the predominant force in the economy. Sometimes, intervention is overbearing and improper.

In order to more effectively and properly manage the market, the state should clearly understand that apart from ensuring the stability and continuity of macro-economic policies, it should follow the principles of a market economy. In the meantime, it should be transformed into a highly efficient management institution governed by the rule of law.

Electricity System Reform

Century Weekly
March 18

China's electricity system reform, stagnant for 10 years, is set for a reboot.

In 2002, the then Prime Minister Zhu Rongji pushed forward a market-oriented reform of the electricity system. In 2003, the old State Power Corporation was split into the State Grid Corp. of China, China Southern Power Grid and five electricity generating companies. The State Electricity Regulatory Commission was also formed that year.

However, reform has come to a deadlock. The State Grid, expected to separate power transmission and distribution, has expanded into multiple industries both at home and overseas, forming the biggest obstacle for the reshaping of the electricity market.

According to experiences in other countries, if China's electricity system reform achieves success, electricity prices will be reduced. However, the precondition should be the dismantling of the State Grid and introducing sufficient competition.

Office Building Waste

China Youth Daily
March 28

A newly built four-storied office building in Chunhua County, northwest China's Shaanxi Province, has been rent out as café bar, with a lease of 20 years.

Since the building is not urgently needed, why was it built? Also, why are so many government departments interested in similar construction?

In China, office buildings are built via public funds and tax revenues. Renting out these facilities can bring huge incomes. Meanwhile, when a government department application for offices is approved, it can make additional money in the bidding and material purchasing process.

How do these departments manage to do this so freely? Key is the lack of restrictive systems that can effectively deter and prevent them from doing so. Thus, to save energy and also government reputation, it's necessary to stop building new government office buildings, as Premier Li Keqiang has said. Also, as for existing spare buildings, they must be dealt with as soon as possible, either to be assigned to departments lacking space or directly confiscated.

Lady Classes

Xinhua Daily Telegraph
March 27

It is reported that a middle school in Guangzhou, capital of south China's Guangdong Province, is planning to open two classes exclusively for female students in grade one of the senior high school section. Students recruited into these two classes will have to daily wear qipao, a traditional one-piece dress for Chinese women, and they will be given classes on how to become a lady, such as housekeeping and social communication skills.

It seems that "manly boys" and "ladylike girls" are disappearing in modern Chinese society. Thus, gender education means to help the young people develop a reasonable concept of female and male, so that boys will act in a manly manner while girls behave in a ladylike way. This is a good intention.

However, unlike in ancient society, females in modern society have long been liberated from housework. Now they have their own jobs and careers while some even play a very important role in public life. Modern life tolerates and encourages the diverse roles of women.

In an open and diverse society, it's natural to see boys pick up some girly habits and vice versa. Lady classes can't cut these girls' connection with the vivid outside world. They will probably still develop in a mainstream direction like other girls.