The research mainly aims to explore the significant change in the government’s strategic purpose and policy thinking behind China’s eleventh five-year plan (hereafter the 11-5 plan). We intend to outline the tasks of China’s government for recovering and reinforcing the market mechanism in performing the resource allocation. It is expected that over the period of the 11-5 plan, the role played by China’s government is having the departure from distributor of economic resource toward a public service provider. The public policy priority has been shifting from the economic growth to the social coherence and harmonization. In this research, we prejudge the effectiveness of the 11-5 plan. The research further highlighted the policies toward three sectors: namely industrial sectors, region development, and energy sector. Finally, the potential impacts of the 11-5 plan upon Taiwan’s economy are also looked at.
