Change of government role is key to reform

What role should a government play in business? This is a question that China and its government must clarify now the Communist Party of China has decided that the market will play a decisive role in the distribution of resources.

The role the market plays used to be described as basic or fundamental. This new definition means that the market will play an increasingly active role in the allocation of resources. But it would be wide of the mark to believe that the government will leave the market to develop on its own. To my understanding, the government will try to get to know where the line is and toe that line rather than go beyond it. This is actually a question of how to balance the relationship between the government and market.

Lim Hwee Hua's book Transformation - Role of Government in Business, which has been translated into Chinese and published by Peking University Press recently, provides some food for thought on how the government can play a desirable part in the market for the benefit of both the majority of residents and healthy economic development.