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A country's governance system andgovernance capacity are very much reflective of that country's institutions andits ability to implement them.

China's governance system is aninstitutional system under the leadership of the CPC by which the country isgoverned.

It is comprised of institutions,mechanisms, laws and regulations regarding economics, politics, culture,society, ecological progress, and Party building. It means a complete set ofclosely connected and coordinated state institutions.

China's governance capacity is its actualability to manage all affairs in Chinese society, including reform,development, and stability; internal affairs, foreign relations, and nationaldefense; and Party, state and military affairs, through state institutions.

China's governance system and governancecapacity complement each other and form an organic whole.

A good governance system is necessary toimprove governance capacity, and improving governance capacity is requisite fora governance system to achieve maximum effectiveness.

To modernize it governance system andgovernance capacity, China needs to adapt to changing times by reforminginstitutions, mechanisms, laws and regulations that fail to keep pace with thedevelopment of praxis, while at the same time establishing new ones, so thatall of our institutions are more rational and robust, and the governance ofParty, state, and social affairs is more institutionalized, standardized andprocedure-based.

China needs to work harder to improve itsgovernance capacity, be more mindful of the need to act on the basis ofinstitutions and in accordance with the law, and make better use ofinstitutions and laws in governing the country.

It needs to use all the strength of itssystem to make its governance more effective, and enhance the Party's capacityto govern scientifically, democratically, and in accordance with the law.