Government function is not fixed, and it is changed according to the change of the economic environment, political environment, and cultural environment. At present, our country is in the key stage of the society change, the economic environment, political environment, and cultural environment have changed enormously, so we must transform our government function as soon as possible. How to define government function in a reasonable way and how to transform it earnestly are not only major theoretical projects but also practical projects for China in the transformation process from the planned economy to a market one to establish the socialist market economic system.This paper is to analyze the basic theories of government function and discusses the importance and urgency of transforming the function in China in an all-round way, the achievements, the problems and the limitations in the transformation, and then puts forward that the government function is to be defined reasonably. Lastly, the paper explores the ways to transformation based on China's real situation.
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