Many scholars argued that the rise of China is in part due to the effective central policies in promoting growth and governance as well as efficient implementation of those policies by local governments. However, over the recent years, growth rates have gradually slowed down, foreign investments declined, and businesses moved out of China, while lower and middle-levels officials have shown less enthusiasm in the workplace amid the wide-spread anti-corruption campaign. In response, the central government has decided to transform the economy from export-oriented to innovation-driven and to pressure local government officials to do more. What does this central orientation mean to local administrations and governance? It may be too earlier to make a full assessment of the effect of this central policy, we still can carry out preliminary studies on what changes have occurred and how local government officials have reacted to implement the central policy. This panel thus focuses on governance issues in the context of the current political and economic transformation in China. This panel welcomes papers dealing with changes, innovations, and challenges in the public administration and local governance in the recent years.