The transformation of China government function starts from optimization of governing economy. A new round of the transformation government function shows its starting point of super-ministry reform and hold streamlining administration and delegating power as principal line. The institutional reform consists of the central government reform and local government reform. Facing the sorts of difficulties，the direction of reform must be going on promoting streamlining administration and delegating power，right of separating the government and enterprises，returning the power to the market and society. <<