Abstract The relationship between the government and market is, in nature, the issue of two kinds of orders. Under the impact of economic globalization and financial crisis, the fundamental issue of the reorganization and economic transformation of domestic steel enterprises is that of in-time transformation of governmental governance model and role. The essential pathway of the reorganization of steel enterprises and transformation of economic structure is achieved through the transformation of governmental governance in the following aspects: changing the model of governmental governance from administrative intervention in economic operation to limited, accountable and rule-of-law modern governance, establishing fair and just rules, improving systems of property rights, modern enterprise and the accountability of government investment projects, continuing to exert macroeconomic control and to press the government to quit fields of ordinary market competition, overcoming administrative monopoly and regional protectionism, and advancing the standardization and perfection of the market order.
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