A dilemma of Chinese healthcare reform: How to re-define government roles?

This paper discusses the governmentʹs roles in the healthcare sector in China. The paper begins with an introduction to the Chinese healthcare sector (supply and demand side) and to the current governmentʹs roles. It then reviews the recent transformation of the healthcare sector, with an emphasis on the change in the governmentʹs roles and the problems resulting from this transformation. The following is an examination of the latest healthcare reform policies and an exploration of pending government roles. Contrary to the opinion that problems existing in Chinese healthcare are primarily caused by market failure, this paper argues that the historically ambiguous and inappropriate roles of government in the provision of health care should be reexamined. This paper concludes that the most important issue facing the Chinese healthcare sector is finding the optimal balance between market and government.