Subnational government and governance in China

This chapter provides an analysis of key features within China’s subnational government system, encompassing the government hierarchy, personnel appointment and performance evaluation, administrative autonomy, public finance, and territorial up-scaling adjustments. China’s subnational government system operates within a unitary framework, consisting of four layers, and exhibits a highly top-down approach to policy formulation and implementation. While the central government maintains and strengthens control over local units, policy innovations and reforms often originate at subnational levels. This combination contributes to political stability and proactive policymaking during China’s reform era. However, it has also led to implementation challenges and an unsustainable local government financing model reliant on land sales. Looking ahead, the Chinese government must maintain the momentum of reforming itself with the vital spirit of pragmatism and strike a better balance between central control and fostering accountable local governments.