Government Contract Institution in China

In market economy, government contract, as a means of administration, is expected to mediate and conciliate the interests between the public and private and to restrain the ever-expanding administrative power. It is proposed that the power of respective administrative organs to enter into government contract must be clearly defined and the execution of administrative priority must satisfy strict stipulations. In resolving government contract dispute, administrative review, administrative verdict and administrative litigation should be first choices. And the ordinary market individuals who have sustained damage are entitled to state compensation in the execution of government contract.