CHARACTERISTICS, SHIFT IN CONTENT, AND METHODS OF REGULATING THE ECONOMIC BEHAVIOR OF LOCAL AUTHORITIES IN CHINA DURING MARKET TRANSFORMATION

Huang Yi

The decentralized economic reform in China not only stimulated the autonomy of local authorities in regional economic development but also formed their own interests. During the tax and budgetary reform, the mechanism of "regional decentralization + career promotion incentives for officials" defined the characteristics of local authorities' economic behavior under market transformation. In the process of market transformation, there was an evolution from "enterprise management" to "urban development management." This shift, on the one hand, contributed to the positive economic development of the country, but on the other hand, influenced by political achievement motivations and interests, as well as contradictions between economic and legal logic, it created certain risks. Currently, the central government of China, by strengthening scientific development concepts and the public budgeting system, aims to clearly delineate administrative and economic functions of local authorities. This is aimed at optimizing the regulation of their economic activities while ensuring high-quality economic development.

Keywords:local authorities in China; market transformation; enterprise management; urban development management; regulation methods.