China's market economy is not perfect. In the course of transition to a market economy, if there is a lack of confidence in government, the market economy will definitely collapse. So, a chaotic market economy must be transitioned to a market economy ruled by law, and this requires the construction of a government that holds public confidence. From my perspective, this will require three processes:

First, the establishment of a service-oriented government: From the existing government, transition to a service-oriented government. From the original government that intervened in the economy, transition to a service-oriented government.

Second, the establishment of a responsible government: As soon as problems emerge there must be accountability, someone steps down, someone accepts responsibility.

Third, only after a responsible government has been established can we discuss a government based on rule of law.

So, as we move from the current economy-oriented government towards a rule of law oriented government, there are several thresholds. After we have finished crossing these thresholds, a comparatively more trustworthy government will have been built. Such a process requires continual focus on management of trust in government, continual perfection of the management of this trust, and learning and acquisition of management techniques and skills. As the government establishes a system for managing this confidence, it will require corresponding systems, techniques, and mechanisms. This is the process I feel China's transition to a market economy ruled by law will require. Reforming public institutions is a top priority.

Observer: There are many public institutions such as the DPTAG, and considerable portions are participating in the phenomenon of utilizing trust in government for private gain.

Li: That's right. Therefore, I contend that we should take advantage of the events involving DPTAG to begin reform of public institutions – this should be a future direction of our governmental reforms.
Of course, public institutional reform is more difficult than reform of State Owned Enterprises (SOEs). Why? Because these institutions have many other functions: one portion may have incidental administrative functions, another portion may have ideological functions. Similarly, DPTAG was created as a multifunctional institution, and the number of these institutions is increasing. Our market economy is increasingly chaotic, trust in the market economy is gradually eroding, and the entire chain of market transactions is in chaos. The public can have no reasonable expectation of stability. This situation requires us to undertake radical reform of public institutions: it is imperative to clarify their legal rights and responsibilities, and address the issue through rule of law, to provide them with accurate places and clear roles in the market – these roles require a unified set of rights, responsibilities, and benefits. 

Observer: And it would need to be clear.

Li: Exceedingly clear. Then no issues will arise.

Observer: Despite what we've been doing in recent years, we haven't been particularly effective: the issues with Dental Prevention and Treatment Advisory Group seem almost inevitable.

Li: That's because we haven't actually been doing much, or rather we say we're taking action but it is insufficient. For example, so far we haven't actually begun reform of public institutions. We have consensus on building the market economy, and speaking from this perspective, we must push reform of public institutions – only in this way can we improve and implement management of government trust. And implementing a system to manage trust in government will result in huge improvements in social justice issues and chaos in the market economy.