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China′s market‐oriented reforms have brought about fundamental changes not just to its economy, but also to urban governance. The reforms have significantly changed urban development from its previous pattern which was largely determined by decision makers within the central government. Reform measures have transformed the role, functions and processes of urban government and have made them a force to be reckoned with in the whole reform endeavour. Examines and analyses issues of administrative reform at the urban government level in ten years of economic reform since 1979. Looks at three aspects of the problem – the trend towards financial decentralization;institutional changes in local administration; and changes in the relationship between urban government and the local economy. Argues that there is an unfinished agenda of administrative reform that needs to be faced by the authorities concerned if the mighty endeavour of economic reform is to succeed.

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