The Chinese government has gone through many lay-offs in its employees every few years since Chinese communists establish the state in 1950. This government reorganization has taken place six or seven times while the process of this reorganization stays the cycle of reduction-expansion-reduction. Researchers hold the following six perspectives to explain the reasons for the expansion of the Chinese bureaucracy:bureaucratic budget-maximization, burden reduction, institute promotion, institute-overlapped establishment, tenure personnel hiring system, the inconsistency between the budget control and the prescribed number of personnel.
The particular salary system in the Chinese bureaucracy provides inner economic incentives for organizational expansion. In addition, this paper argues patron-client relationship and money-power exchange informal institutionalization also provides political incentive and exterior economic dynamics. These two factors together explain why organizational excessive expansion in Chinese bureaucracy.