New Public Management for China's 1998 Administrative Reform

The article examines China's 1998 administrative reform in a global context of the new public management (NPM) movement. Specifically, it explores the structural and political implications of the reform. Although the reform may be best remembered for its 50% bureaucratic reduction, the author argues that the major significance lies in the transformation of government and business relationship. The reform is the most decisive and thorough among administrative reforms in the past two decades. But its long-term success will depend on further reforms at provincial and local levels, state enterprises, and continued political support.