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Local Government in Asia and the Pacific:
A Comparative Study

Country paper: China

  Description of the Country
  Evolution of Local Government
  Local Government Categories
  Local Government Functions
  Local Government Finances
  Personnel Systems
  Central-Local Links
  Public Participation
  The Way Ahead
  Further Reading

Brief Description of the Country and Its National/State Government Structure

Demography

The People's Republic of China (PRC), founded on 1 October 1949, covers an area of 9.6 million square kilometres. In 1994, it had a population of 1198.5 million and 31 provinces, autonomous regions and municipalities. China is a country with 56 nationalities but the Han nationality is the largest one, accounting for about 94 per cent of the total population. Beijing is the capital of the country. China's population is unevenly distributed. In 1994, the eastern part of China covered about 40 per cent of its area but housed over 90 per cent of its population. In the same year most of the Chinese people were rural and only 28.62 per cent were considered urban although the number of cities reached 619.

China is accelerating its industrialization and non-agricultural activities have dominated the economy in most of the coastal developed areas. However, China's economy as a whole, measured by Gross National Product (GNP) and employment, is still dominated by agriculture. In 1994 the ratio of primary, secondary and tertiary sectors was 21.0 per cent, 47.3 per cent and 31.8 per cent of GNP and 54.3 per cent, 22.7 per cent and 23.0 per cent in terms of employment. China GNP was 4,491,800 million RMB yuan (about 547,780.48 million US dollars) in 1994, but the GNP per capita was only 374 yuan (about 457 US dollars) due to its large population. Therefore, China can be categorized as a developing country.

National governmental and political structure

China is a socialist country led by the working class and a people's democratic dictatorship based on the alliance of workers and peasants. The organs of state power include the People Congress, Chairman, State Council, Military Commission of the Central Committee of the Communist Party, Local People Congresses and Local Governments, Autonomous Organs in the nationality autonomous regions, the Supreme People's Court and the Supreme People's Procuratorate. The system of the People Congress is a radical political system. The People's Congress of China is the supreme organ of state power and its permanent organization is the Standing Committee of the People's Congress of China. The Standing Committee exercises legislative power. The Local People Congresses at different levels are the state power organs at local level. The Local People Congress at county level or higher level set up the Standing Committees that forms the permanent organization at the corresponding local levels.

The Chairman of the country, according to the decision of the People's Congress and the Standing Committee, has the power to promulgate decrees, appoint and remove the Premier and Vice Premier of the State Council, as well as state members, Ministers, the Major auditor and the Secretary General, confer the state medals and glory titles, issue the decrees of special pardon, martial laws and mobilization order and proclaim the state of war. The State Council of China is the supreme administrative organ of the state and the executive organ of the supreme organ of state power. Local governments are the executive organs of the state power at different local levels and are the local administrative organs. Local governments are the administrative organs of state under the leadership of the State Council and obey the State Council.

Figure 1. Organization of the Chinese Government

Organizational chart of the Chinese Government

The Military Commission of the Central Committee of the Communist Party leads the armed forces of the country. The Chairman of the commission holds the responsibility to the People's Congress and the Standing Committee of the congress.

People's Courts at different levels are the judicial organs of the country. The People's Courts at local levels, Special People's Courts and the Supreme People's Courts exercise the judicial authority. The People's Courts at local levels are divided into the Basic-Level Courts, Middle People's Courts and Higher People's Courts. The Special People's Courts include Military Courts, Railway Transportation Courts, Water Transportation Courts, Maritime Courts, Forest Courts and other Special Courts. The People's Procuratorates at local levels are the organs of law supervision of the state. The state sets up the Supreme, Local and Special People's Procuratorates. The Local People's Procuratorates include those of province, autonomous region and municipality, those of autonomous prefectures, cities under the jurisdiction of province and those of county, city, autonomous county and district under the jurisdiction of city. The Special People's Procuratorates include the military, railway transport, water transport and other ones.

China is a country with several political parties which practices multiparty cooperation and political consultative system under the leadership of the Communist Party. The democratic parties join the state power, the consultation of the policies and selecting leaders of the state, the formulation and practice of national policies and laws.

Evolution of Local Government, its Legal and Political Background

Since the foundation of the People's Republic of China, the designation of the organs of the central government, with the development and change of political and economic situations, has experienced adjustment and could be divided into four periods.

Socialist transformation (1949-1956)

After the foundation of the Peoples Republic of China, the Central Committee of People's Government represented the country and exercised state power. The Committee organized the Government Administration Council, the Revolutionary Military Committee, the Supreme People's Court and the Supreme People's Procuratorate. In 1952, the Central Committee changed the people's government into administrative committees that were taken as the organs of the Central Committee to lead and supervise the local governments in order to suit the new situation. At the same time, the ministries of the Government Administration Council were adjusted and increased to 42 ministries by the end of 1953. In June 1954, the central government, in order to strengthen its leadership to the provinces, municipalities and autonomous regions, to decrease its organization levels and to raise its efficiency, decided to dismiss the administrative committees. In 1955 and 1956, the socialist transformation of urban industries and commerce and the cooperative transformation of agriculture were undertaken. The central government adjusted and reorganized the financial ministries organs under the State Council in order to strengthen its leadership of the economy. By the end of 1956, the State Council had 81 organs: 48 committees and ministries, 24 institutions directly under the council, 8 offices and 1 Secretary General. This was the first major reorganization of the central government since liberation.

Socialist construction (1957-1966)

With the end of the first five-year plan and the completion of the socialist transform action, the administrative organizations of the state increasingly became overstaffed and inefficient and were not suited to the development of productive force. In 1958 and 1959, the State Council adjusted its organization. By the end of 1959, the State Council decreased its organizations to 6 offices and 1 general-secretary. In the winter of 1960, in order to adjust, consolidate and develop the national economy, 6 central bureaus were set up covering North, Northeast, East, Central, Southwest and Northwest China. By 1965, the ministries and organizations under the designation of the State Council were subdivided. By the end of 1965, the State Council had 79 organizations, including 49 committees and ministries, 22 organizations directly under the Council, 7 offices and 1 Secretary General.

Cultural revolution (1966-1976)

In May 1965, the Chinese Community Party decided to establish military control in some ministries of the State Council and either transfer them to the armed forces or sent military representatives to these ministries. In 1970, the whole country was divided into 10 coordinated regions. Management of most enterprises and organizations directly under the state was put under the lower administrative levels. Many organizations were cut down and merged and large numbers of personnel were transferred to lower levels. By then, the State Council only had 32 organizations of which the 13 organizations transferred to management by the Military Committee. Therefore, the State Council only led 19 ministries. From 1971-1973 and in 1975, the economic system experienced 2 consolidations. The State Council increased to more than 20 organizations. By the end of 1975, the council had 52 organizations, including 29 committees and ministries, 19 organizations directly under the council and 4 offices. During this period, the management of the state with respect to economy and society was not undertaken formally.

New socialist construction (1976-1999)

In October 1976 the Cultural Revolution ended and the socialist construction of China entered a new era. From 1977 to 1981 the State Council resumed and designated 48 organizations. By the end of 1981 the council had 100 organizations: 52 committees and ministries, 43 organizations directly under the council and 5 offices. This was the greatest reorganization of state organs since the liberation. From March to August 1982 the State Council carried out the organizational reform. Through adjustment efforts, the organizations of the council decreased to 61. In December 1982 the posts of state Chairman and Vice Chairman were resumed, state members were added the council and the Military Commission of the Central Committee of the Communist Party was designated. From 1983 to 1987 the State Council designated some committees, departments and bureaus to improve the administrative system of the country. In October 1987 the Communist Party of China decided to carry out the reform of the political system accompanying the reform of the economic system. By the end of 1990, the State Council had 68 organizations, including 41 committees and ministries, 19 organizations directly under the council, 7 administrative bodies and 1 general office. In addition, 16 State bureaus under the governance of committees and departments were designated. In October 1992, the Communist Party of China put forward to carry out the reform of political system actively and construct the socialist democratic politics with Chinese features.

Local Government Categories and Hierarchies

Types and levels

Local governments, according to the Constitution and the related law, are divided into 3 main types: local governments at different levels, autonomous governments of nationality regions and governments of special administrative regions. In 1996 an administrative hierarchical structure was formulated. The structure is the same as that of the Communist Party at the national, sub-national and local levels. The levels of local government have undergone several changes since the foundation of the PRC. Generally, there were 6 levels from October 1949 to September 1954: large region, province, city, county (urban district), district and country (township). Since September 1954, the number of levels changed to 5 levels: province, city (prefectures, league and autonomous prefecture), county (autonomous county, banner and district under the jurisdiction of the city), district and village (people's commune, town and autonomous country). At present, the organizational system of local government is divided into 4 levels:

Provincial level

These include Provincial, Autonomous Region and Municipal Governments, which are the highest levels of local government. In 1996, China had 31 provincial-level administrative units, including 23 provinces, 5 autonomous regions and 3 cities;

City level

This category includes cities under the jurisdiction of the province, prefectures, autonomous prefectures as well as leagues and districts under the jurisdiction of the apex municipalities;

County level

This level includes country, autonomous county, county-level city, banner, autonomous banner, special zone, forest districts, industrial and agricultural districts, districts of the city under the jurisdiction of province, subdistricts of the apex municipalities, etc.;

Village (town) level

These include county, autonomous village, town, subdistrict (excluding those of the municipality) and are the lowest levels of local government.

Autonomous government of nationality region

China is a multinational country. To carry out the autonomous system of nationality in each region is the nationality policy of China. In 1954, the Chinese Constitution divided the autonomous nationality regions into 3 levels: autonomous regions (provincial level), autonomous prefectures (prefecture and city level) and autonomous counties (county level) according to their administrative levels. By the end of 1992, mainland China had 5 autonomous regions, 30 autonomous prefectures and 124 autonomous counties (leagues).

Special administrative district

In 1982 the Chinese Constitution wrote that the state would set up special administrative districts whenever deemed necessary. On 1 July 1997, China resumed exercising sovereignty over Hong Kong and set up the special administrative district of Hong Kong. In 1999 Macao will return to China and a new special administrative district will be set up. The special administrative district is the product of the conception of one country, two systems, which means that mainland China carries out a socialist system and Hong Kong, Macao and Taiwan a capitalist system. But in the international affairs, the PRC is the only country representing China.

Figure 2. Administrative Hierarchy of China (1996)

Administrative hierarchy of China (1996)

Local Government Functions

The main function of local government is managing the economy of the area under its jurisdiction. This includes:

  • Drawing up socio-economic development strategies of the regions as well as middle and long-term plans for economic development, year plans, measures of developing resources, transforming technologies, importing technologies and capital;
  • Solving important economic contradictions between branches and between branches and regions and mediating economic relations;
  • Organizing and coordinating production and circulation;
  • Enforcing economic laws and regulations;
  • Appointing and dismissing cadres; and
  • Providing infrastructure basic conditions and services for economic development.

After the reform of the economic system in 1978, local governments have increasingly participated in economic construction and played an important role in rural-based industry promoting economic development. The Pearl River Delta, an economic developed region in China, for example has seen a great socio-economic leap. Between 1980 and 1993, the rural enterprises in the delta increased from 30,850 to 403,898 and by 1993, the industrial output value by rural industries accounted for 39.49 per cent of the total industrial value. The rapid development of rural industries resulted to a large extent from the impetus of local governments. In 1980s, during the early period of the economic take-off in the Pearl River Delta, local governments and enterprises were combined into one. As of such, local governments directly intervened in the economy and played a leading role by providing a series of favourable conditions for enterprises. These included amongst others transferring governmental functions to help the development of rural industries, identifying projects for enterprises, resolving the problem of shortage of special personnel for enterprises, providing credit guarantees for the management of indebted enterprises, improving infrastructure, opening overseas markets, fostering backbone enterprises, establishing enterprise groups, and developing scale economies. Apart from managing the economy, local governments have the following functions:

  • Culture and education;
  • Urban and rural development and construction;
  • Finance and taxation;
  • Civil administration;
  • Social security and public order;
  • Medical and health affairs; and
  • Other functions.

Organization of local government

Local governments consist of personnel and functional branches. Local government personnel include two types: administrative senior officers, vice senior officers and heads of various functional branches and working personnel. The composition of local governments at different levels is listed as follows:

Provincial government

At present most of the governments of the provinces, autonomous regions and municipalities have about 45 organizations and 50 officers who are selected for a term of five years.

Figure 3. Organization Structure of Provincial Government

Provincial Government - The People Congress at Province Level
General Office
Department of Civil Administration
Department of Finance
Department of Public Security
Department of Safety
Department of Legislature
Department of Education
Department of Broadcast and Television
Department of Health
Department of Territory
Plan Committee
Economic Committee
Agricultural Committee
Committee of Foreign Trade
Construction Committee
Committee of Science and Technology
Committee of Physical Exercises
Committee of Nationality Affairs
Office of Affairs concerning Nationals Living Abroad
Department of Personnel
Department of Labour
Bureau of Statistics
Bureau of Prices
Department of Auditing
Bureau of Aquatic Products
Department of Higher Education
Bureau of News and Publication
Bureau of Industrial and Commercial Management
Bureau of Rural Industry Management
Department of Supervision
Department of Transport
Department of Machinery Industry Department of Petroleum and Chemical Industries Department of the First Light Industry
Department of the Second Light Industry
Department of Agriculture
Department of Forestry
Department of Water Conservancy and Power
Administrative Offices (many)

City government

Generally speaking, city government consists of 9 to 35 officers (45 at most) selected for a five-year term. Details are presented in figure 4.

Figure 4. Organization Structure of City Government

City Government The People Congress at City Level
General Office Bureau of Civil Administration
Bureau of Finance
Bureau of Public Security
Bureau of Safety
Bureau of Legislature
Bureau of Supervision
Bureau of Auditing
Bureau of Prices
Bureau of Culture
Bureau of Statistics
Bureau of Archives
Bureau of Tax Affairs
Bureau of Territory
Bureau of Personnel
Bureau of Labour
Bureau of Education
Bureau of Health
Bureau of Industrial and Commercial Administration
Bureau of Agriculture
Bureau of Broadcast and Television
Bureau of News and Publication
Committee of Plans
Committee of Economy
Committee of Urban and Rural Construction
Committee of Transport
Committee of Commerce
Committee of Economic System Reform
Committee of External Economy and Trade
Committee of Physical Exercises
Committee of Family Planning
Committee of Science and Technology
Office of Affairs concerning Nationals living abroad
Office of Foreign Affairs
Office of Environmental Protection
Office of Air Defense
Bureau of Water Conservancy
Office of Advice

County government

Consists of 9 to 21 officers (31 at most) selected for a term of five years.

Figure 5. Organization Structure of County Government

County Government The People's Congress at County Level
Office
Bureau of Civil Administration
Bureau of Finance
Bureau of Public Security
Bureau of Legislature
Bureau of Auditing
Bureau of Prices
Bureau of Culture
Bureau of Statistics
Bureau of Personnel
Bureau of Labour
Bureau of Education
Bureau of Health
Bureau of Industrial and Commercial Administration
Bureau of Agriculture
Bureau of Grains
Bureau of Tax Affairs
Committee of Economy
Committee of Urban Construction
Committee of Transport
Committee of Commerce
Committee of System Reform
Bureau of Foreign Trade
Committee of External Economy and Trade
Committee of Physical Exercises
Committee of Family Planning
Committee of Science and Technology
Office of Agricultural Division
Bureau of Environmental Protection
Bureau of Rural Industries
Bureau of Animals
Bureau of Forestry
Bureau of Water Conservancy
Committee of Nationality Affairs

Rural (town) government

At this level, several organizations are designated each of which has one leader that can function in an acting capacity. The county and town governments generally spoken consist of 3 to 13 officers selected for a term of three years. Details are presented in figures 6 and 7.

Figure 6. Organization Structure of Country Government

Country Government - The People's Congress at Village Level
Office
Committee of Economy
Office of Farmland and Water Conservancy
Office of Family Planning
Office of Civil Administration
Office of Legislature
Office of Culture and Education

Figure 7. Organization Structure of Town Government

Town Government - The People's Congress at Town Level
Office
Committee of Economy
Committee of Science and Technology
Office of Water Conservancy
Committee of Town Construction
Committee of Environmental Protection
Office of Civil Administration
Office of Culture and Education
Office of Legislature
Office of Family Planning
Office of Affairs concerning Nationals living abroad
Office of Finance
Committee of Agriculture Development
Office of Industrial and Commercial Administration
Office of Territorial Management

Formation of local governments

The corresponding People's Congress selects the senior officer and vice senior officers of local governments at different levels. As for local governments at the county or higher level, the Standing Committees of the corresponding People Congress decide, after the election of senior officers, on the appointment and dismissal of other posts based on the nomination of the provincial governor, the Chairman of the autonomous regions, the mayor and heads of autonomous prefectures, counties and districts and report to the next higher level government for record. In China, an indirect rather than direct election system is adopted to elect the local administrative officers. That is, the local voters elect the representatives to the People Congresses who have the right to elect the officers of local governments. The candidates for the function of senior officer and vice officers should be nominated by the presidium of the people's representatives or co-nominated by more than 10 representatives.

Authorities of local governments

The authorities of local governments refer to their rights to govern administrative affairs in their administrative divisions. The extension of these rights is directly proportional to the government level and function number. The Constitution of China stipulates the functions and powers of local governments at different levels in Han nationality areas are as follows. "Local governments at the county or higher level have the power to carry out resolutions and orders of the People Congresses at the corresponding and higher level of governments and of the State Council, can govern the economic, educational, scientific, cultural, health, sport and administrative affairs, like finance, civil administration, public security, nationality, judicature, supervision and family planning, exercise personnel appointment and dismiss training, examination, rewards and punishments. The provincial and municipality governments have the power to decide on the designation of the country and the nationality of the country and town. Local governments at country and town level have the power to carry out resolutions and orders made by the People Congress at the corresponding and higher level of governments and to govern administrative affairs. The autonomous authorities of governments of the autonomous areas, except for exercising the powers of the local governments at the same levels as mentioned above, can decide on local finance for themselves, govern the local educational, scientific, cultural, health and sport affairs for themselves and have the power to organize the public security army for safeguarding local social security and to use the local language in common use."

Structure relations of local governments

Local governments of China comprise a hierarchical system with a characteristic of leadership at different levels, the lower level being subordinate to higher level. The provincial governments lead the city governments. City governments lead county governments and county governments lead country governments. This means that lower-level governments must accept the leadership, instructions, supervision and examination of higher-level governments conscientiously and complete the tasks received from them. At the same time, local governments at different levels comprise the system of complete political power. They can exercise their functions and powers independently under the guidance of the higher-level government.

Local Government Finances

Government revenue and expenditure

Since the third Plenum of the 11th Central Committee, the central government has put forward a series of policies that have expanded the power of local authorities in local finance. Therefore, provinces can have an independent plan as well as autonomy in economic management. Consequently, they have opened their doors to the outside world, fully utilizing local resources. By emphasising the continuous, coordinated and rapid economic development at the local financial administration has been strengthened. All these result in the expansion of local revenues and expenditure, which contributes to the swelling of central government revenue.

Table1. Government Revenues and Expenditures (in percentages)


Government revenue by source 1983 1993

Total (100,000,000 yuan)* 1248.99 5087.67
1. Taxes 62.10 83.64
2. Revenue from enterprise 19.26 0.97
3. Debts revenue 6.36 14.53
4. Funds levied for development of energy industry, transportation and key construction projects 7.45 2.30
5. Other revenues 4.84 6.64
6. Subsidies to loss-making enterprises   -8.08

Government expenditures by account item 1983 1993

Total(100,000,000 yuan)** 1181.93 4469.52
1. Expenditure on capital construction 32.39 20.15
2. Circulating funds 1.09 0.41
3. Technical updates and transformation of enterprises and new product promotion funds 6.66 9.43
4. Geological prospecting 2.00 1.10
5. Administration expenses of industry transportation and commerce 2.36 1.71
6. Expenditures on supporting agricultural production and administration 7.33 7.24
7. Culture, education, science and health care 19.76 21.34
8. Pensions and social welfare relief funds 2.03 1.68
9. National defense 14.99 9.53
10. Government administration 8.65 13.11
11. Repayment of loans 3.59 7.52
12. Price subsidies 6.70

Source: The Statistical Bureau of China, 1995

* Debts revenue includes revenue from foreign debt and domestic government bonds, etc. 1983 figures for enterprises' revenue are less than industry revenue, due to foreign trade and grain enterprises have big value of loss reduce the other enterprises' revenue. 1993 figures for total taxes and revenue from enterprises are not comparable with 1983 due to institutional reform.

** Government administration includes expenditures on armed police, public security, judicial agencies and the justice system.

From table 1 one can see that the industrial and commercial taxes were the major contributors to the government revenue, accounting for 62.10 per cent and 83.64 per cent in the total in 1983 and 1993 and having increased 21.54 per cent in the last 10 years. This increase in the share of industrial and commercial taxes was the result of reform and improvement of the tax system on the one hand and a reflection of the industrial structural change towards the dominance of industrial and tertiary sectors on the other, resulting in governments having relatively stable and reliable revenue. However, between 1983 and 1993, the order of items with the largest expenditure allocation changed. In 1983, capital construction, culture-education-science-health care and national defence ranked the first three with the largest allocation. In 1990, the first three were culture-education-science-health care, capital construction and government administration. This change indicated the changed priorities after the implementation of the economic reform. In the mid 1980s, the state developed the economy mainly through capital construction. In the early 1990s, the central government implemented an economic policy of macro adjustment and control, so that the scale of capital construction was controlled to some extent. In both years, the expenditures on culture, education, science and health care accounted for about one fourth in the total, which showed that the central government has been paying attention to these social services.

Local financial revenue

In China, the local financial revenue comes mainly from three channels:

  • Local taxes;
  • Shared taxes;
  • Non-tax revenues.

Figure 8. Local Financial Revenue

Local Financial Revenue
Taxes
Local Taxes
  Income tax of collective enterprises
  Agricultural tax, contract tax
  License plate tax of using vehicles and ships
  Real estate tax of cities
  Tax on slaughtering animals, tax on animals trade
  Tax on country fair trade, tax on urban maintenance and construction
  Income tax of local state-owned enterprises
  Adjustment tax of local state-owned enterprises
Shared Taxes
  Product tax, business tax
  Increment tax, resource tax
  Building tax, salt tax
  Income tax of individuals, bonus tax
  Tax on industrial and commercial integration
  Income tax of joint-venture enterprises
  Income tax of foreign enterprises
Non-Tax Revenue
  Revenue from monopoly
  Revenue from benefit fee from projects
  Revenue from penalty and compensation
  Revenue from a set quota
  Revenue from trust and management
  Revenue from assets
  Revenue from contribution
  Revenue from assistance
  Revenue from bonds and credits
  Revenue from allowance

Local financial expenditure

Local financial expenditure includes three major areas. These are: expenditure on exercising local political authority, expenditure on exercising local governance powers, and other necessary expenditures.

Expenditure on exercising local political authority

This includes the expenditures of political parties and organizations to organize local political activities through activity funds of local party committees (including the expenditure of convening the Communist Party Congress, administrative expenses of the party committee and salaries of personnel), activity funds of People Congress at different levels and activity funds of democratic parties and mass organizations at county level or higher levels.

Expenditure on exercising local governance powers

This includes activity funds of local governments, local courts, local procuratorates, including the administrative expenses, business expenses and operating expenses of government organs, the expenses of economic, cultural and security construction and the financial allowance of local courts and procuratorates to handle the cases.

Other necessary expenditure

This includes expenditures on social and economic development (infrastructure, education, social development and so on).

Local financial system

Since the foundation of the PRC in 1949, China has adopted a financial system of unified leadership and graded management. This system implies that not only does the Finance Department centrally control financial power, but also that the financial revenue and expenditure system is centrally planned, checked and ratified by the state. Furthermore it provides that the state makes national financial laws and policies, while local governments can only adapt some rules and methodologies to suite local conditions. The local political authorities decide local budgets. The unified general budget is divided into the central budget, provincial budget, county budget and basic-level (village and town) budget. The local budget is associated with local finance. The local governments redistribute the local budgets according to the budgets checked and ratified by the next higher and central governments and dispatch the local reserve financial resources, make up the concrete measures of carrying out the national budget, carry out the local budget and work out the final accounts. The People Congresses at the county level and above have the powers to discuss, determine, examine and approve the budget. The State Council has set up the auditing organs in order to audit and supervise the financial revenue and expenditure of the departments of the State Council and local governments at different levels. The auditing organs have their branches in local governments at all levels of government and exercise the auditing and supervisory powers. The above system is for the budgeted funds. For the non-budgeted funds, the system of planed management is accepted.

Personnel Systems in Local Government

Organization system of cadre personnel management

The organization system of cadre personnel management of China consists mainly of organization branches of Communist Party committees at different levels and personnel management branches of local governments at different levels. The Central Committee of the Communist Party and local committees set up the organization branches. The organization department is the functional branch of party committees responsible for carrying out the cadre policies, improving the cadre system, constructing and examining cadre's thought style and putting forward suggestions to the party committees, according to the laws, in terms of the examination, appointment and dismissal of cadre. The State Council sets up the personnel department of managing cadre at the top level as well as the personnel organs in local governments. These personnel organs, under the leadership of the party committees and governments at corresponding levels, are responsible for cadre management in their own areas. The Supervisory Department of China and the supervisory organs are important components of the management system and mainly supervise the different state organs and their personnel to overcome bureaucracy, correct unhealthy tendencies and serve the people wholeheartedly.

Concrete institutions of cadre personnel management

Selecting and appointing cadre

Several principles appoint people according to their political integrity and ability; select people in terms of the needed matters and their abilities and promote people gradually.

Examining, awarding and punishing cadre

Different examination standards, according to the characteristics of cadres at different levels, should be worked out. Since its liberation, China has set up some institutions and regulations to examine and evaluate cadres, which involve four aspects of moral character, ability, hardworking and achievements, central to examining real achievements. The basic method of examination is the association of leaders and masses from below and the top. Generally the examination is held yearly. Promotion is the important style of awards after cadre examination, but the principle of graded promotion is followed.

Training cadre

Training is an important channel of raising political quality and professional ability of cadres and an important measure to achieve the cooperation and replacement of old and new cadres. The concrete methods of training cadre include: establish the institution of study days in the routine work; temper themselves in practice and study by being released from work.

Cadre salaries and welfare

The current system of cadre salaries is in practice since July 1985 and is characterized by a structural wage institution taking the duty wage as the main content. The salaries of state cadre include four parts: basic salaries, duty salaries, allowance of working and teaching years and awards (including raised salary by award and bonus). Cadres, apart from salaries, enjoy the regulated vocations, public health service and social welfare after retirement or death.

Central-Local Links

Organizational leadership and subordination

The supreme administrative organ is the State Council. The administrative organs of state in the locality are the local governments centrally led by and obeying to the State Council. The branches of local governments must carry out the laws and regulations of central government, complete the tasks given by it and accept its professional guidance.

Functional division and coordination

The functions of central and local governments are very similar in content. The difference between the local and central level is that the central government manages the administrative affairs of the country centrally and makes the macro decisions while the local governments mainly manage local administrations.

Centralization and decentralization of state powers

The relationship between the State Council and local governments follows a model of unified leadership and proper decentralization of powers. In particular those branches of government concerned with political and social stability, socio-economic issues of vital national concern, high technology, major infrastructure construction, key scientific and research institutes and universities are managed by the central government. As for finance, economy and trade, legislature, education, scientific technologies, health, culture, sports, employment, personnel and social welfare a graded management by both levels of government is practiced. For the important adjusting and control of powers of macro economy on banking, tax, price and the development power of resources, a joint method of division of authority is put into place. The branches like auditing, supervision, statistics could practice the system of dual leadership.

Unified financial leadership and graded management

The unified finance of the state is divided into two levels, central and local, in which the local level can be subdivided into three levels: province, county and country. For the cities that govern counties administratively, a fourth level, namely city-level, is added. In this hierarchical framework, central finance is in a leading position and local finance is the basic one.

Administrative interaction

Central government can exert its influence on local administrations in many aspects. The State Council, in terms of the administrative legislature, controls the local administrative procedures. The local governments must follow the laws and regulations by the central government. The State Council guides the local administrations in terms of policies, assigns tasks to local governments in terms of plans. In doing so, the central government confers on the local governments the necessary authorities. The State Council examines and approves the works of local governments through three graded ways - general supervision at the administratively subordinate relationship, special supervision of supervisory branches and economic supervision of auditing branches. Through these supervisions, the central government evaluates the local governments' practice to policies, laws and plans. Of course, local governments have counter-action to central government to some extent. In recent years, some local governments have exerted certain influences on the central government at the decision-making of finance, import, export, trade and so on.

Extent of Public Participation

Chinese Constitution stipulates that Chinese people can manage the state affairs, economic and cultural undertakings and social affairs through various channels and ways. The system of the people's participation is the expression and essential character of the socialist democratic system. The people's participation includes two ways - direct and indirect participation. The latter refer to the participation that the elected representatives or their agents by election govern the state and its social and public affairs. The electoral law of China has different stipulations for the ratio of every representative to the represented population in urban, rural and minority nationality areas respectively. When voting for the representatives of the national People Congress, the population represented by each representative in rural areas is 8 times more than that in urban area. When selecting the representatives of the provincial and autonomous region's People Congresses, the ratio of rural and urban areas is 5:1. For the representatives of the People Congresses at levels of autonomous prefectures and counties, the ratio is between 1 and 4 rural to 1 urban. For municipalities, cities and districts under cities, each rural representative will represent more population than urban districts. The stipulation by the electoral law really reflects a higher percentage of the current development in urban and rural areas.

The law also stipulates that the ratio of electing representatives in Han and minority nationality areas is different. In the minority nationality area, if the total population of a same minority nationality is less than 15 per cent of the total population in the area, the population represented by each minority nationality representative is allowed to be presented proportionally less than the population represented by each non-minority nationality representative, but not less than a half. For the areas in which the minority nationality population accounts for over 15 per cent but less than 30 per cent, the situation is the same as the above one but the minority nationality representatives cannot exceed 30 per cent of the total representatives. For the autonomous counties with very small population, the population represented by each minority nationality representative is allowed to be represented a half less than the population is by each non-minority nationality representative. All minority nationalities should have the representative of the national People Congress even if their population is of a very small number. Besides, electoral law stipulates that the national People Congress and the Local People Congress in the areas with relatively more returned overseas Chinese should have a proper number of representatives of returned overseas Chinese.

All these concrete stipulations reveal the substance of the socialist democracy. Another way of public involvement is direct participation, which means that the people themselves govern national and social affairs by participating in elections, supervision, democratic management of enterprises, management of cultural, health, welfare, security, mass organization, government or political affairs and through discussion. Political participation is the core content of people's participation. The channels of people's participation can be divided into organizational and non-organizational participation. Organizational participation refers to people participating in the management of national and public affairs through some social organizations like political parties and trade unions. Non-organizational participation refers to people as individual citizens participating in the management of national and social affairs according to certain law procedures, such as individuals' participation in election, holding public offices, expressing their opinion and putting forward suggestions and critiques to the state organs and their personnel. At present, the system of the people's direct participation includes 4 components.

Social consultation and dialogue

In the socialist system, direct dialogue and consultation about important national and local affairs between the leaders and the masses, and between social organizations and the masses can be undertaken on an equal basis, which shows that the system is a democratic political system. The social consultation and dialogue are favourable to Handle and coordinate the different benefits and contradictions between various social groups, build a close association between the leaders and mass, make the decision-making more scientific and more democratic and promote the socialist democratic and political construction.

Writing letters and visiting state organs

People can express their own and collective ideas and suggestions to the state organs by writing letters and paying visits. This kind of activity, to some extent, reflects the state of national socio-economic development and the social contradiction objective. Besides, it is a factor of supervising and restricting the state organs and management branches at different levels and has an impact on the decision-making of the leadership circle. This system is an expression of the socialist democracy with Chinese features.

Workers and staff congress

Workers and staff in state-owned enterprises comprise the congress through democratic election, which exercises the power of democratic management. It is a basic form of state-owned enterprises to practice democratic management and an important system of realizing the goal that workers and staff directly participate in management and exercise their powers of being the masters in the country.

Mass autonomy in bottom-level areas

According to the laws, the people adopt a system of managing, educating and serving themselves in the social bottom-level areas where they live. According to the Constitution, there are two mass autonomous organizations in the bottom-level areas - the neighbourhood committee in urban areas and village committees in rural areas. Both kinds of committees are identified as an organization form with direct democracy and are important organization forms of direct peoples' participation in the management of national affairs and therefore are an important component of the socialist democratic and political system.

The Way Ahead

Since its liberation in 1949, local governments have played an important role in political, economic and social life. The planned economy is changing towards a market-oriented one and the reform of political system will change the governmental organization towards the direction of facilitating the development of a socialist market economy. The functions of local governments will shift from the intervention towards fostering the market and guaranteeing its normal operation, otherwise the socio-economic development would be hindered. The model of combination of local governments and enterprises in the Pearl River Delta Region serves as an example. However, although it has greatly promoted the development of rural industries, it has been recognized it had many drawbacks with the expansion of rural industries and gradual establishment of a market economy. These drawbacks include that the expanded rural industries do not need the protection of government anymore and that the model of the combination into one of local governments and enterprises is not suited to the market economy, as it has resulted in the weakening of functions of local governments and may cause the blind intervention of local governments to rural enterprises and so on. Obviously, the local governments and enterprises must separate from each other. That is, local governments must extricate from microeconomic activities and change to macro adjustment and social development.

Further Reading

All documents are written in Chinese

Lu, C. W. (ed.), The Contemporary Political System of China, Zhongshan University Press, Guangzhou, 1993

Xu, C. D. (ed.), Chinese Constitution, The People's University of China Press, Beijing, 1989

Pu, X. Z. et al (eds.), The Contemporary Administration of China, Fudan University Press, Shanghai, 1993

The Secretary Bureau of the General Office of the State Council, Organization of Chinese Government, Chinese Development Press, Beijing, 1995

Wang, J. .S., Government and Politics of the People's Republic of China, Press of Party School of CCCP, Beijing, 1995

Yiu ,G. J. et al (eds), Governmental Functions, Structure and Operation, People's Daily Press, Beijing, 1996

He ,G. Q., Local Governments of Contemporary China, Press of Higher Education of Guangdong, Guangzhou, 1994

Zhang, J. S. et al, Functions and Organization Structure of Local Governments, Huaxia Press, Beijing, 1994

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