As agents of the state, civil servants are central to public governance and socioeconomic development. In developing countries, it has been seen that an effective civil service pay system may provide strong incentives for better public service and rein in corruption whereas poor remuneration can fuel corruption and discontent among civil servants. Grappling with a well-functioning pay regime has challenged the PRC since its birth.

Over the past decade, reforms have been implemented in the civil service pay system that are closely associated with legitimacy change (from an economy-based approach to welfare-based one), income distribution and central - local relations. However, these have led to a heated debate over the legitimacy, effectiveness and direction of these reforms.

By examining this situation and the tug-of-war over remuneration among different players, this pioneering study deepens our understanding of China's reform process and its actors.