Governance and health care reforms in China

The mismanagement of the health care sector in China is well known, as there exists a huge literature highlighting the misaligned incentives that afflict the sector. Less well known is how the governance arrangements in China let to the sector’s rapid deterioration. The paper will show that the Chinese health policymakers do not understand the dynamics of governance relationships that underpin the sector and therefore do not address them, leading to undesirable outcomes.