Expansion of Interdistrict Deal: Thinks of the Separation of Government and Market

The strong rising momentum of economy caused by China’s decentralization reform makes people focus on the incentive function of ‘economy decentralization’,while ignoring that ‘power constraint’could have a rational incentive on the maintenance and development of market to government.Western financial decentralization theory has set a strict premise on inter-district mobility of factors,in essence,it has raised a symmetric problem between decentralization incentive and power constraint.According to the two contrary trends of market expansion and market segmentation which Chinese local governments are acting on,this paper analysises the effects and impacts on local governments’ paradoxical act caused by decentralization system.Based on the thinking of system error-correcting,which is meant in this paper,having a reflection on the system arrangement defects of ‘asymmetry in decentralization incentive and power constraints’ due to the decentralization system in China.Assumptioned with the government power constraint in western financial decentralization theory,this paper expounds that demonstrations,based on the logical promotion of decentralization incentive should be implemented on both the significance of government power constraint and the way to carry out government’s official duties,in strict accordance with the law.