The purpose of this study is to draw the background of the change from ‘Plan’ to ‘Guideline’ in the 5-year economic development plan in China that implementing since 1953. Also, derive the implications of the change through analysis of difference between 10th 5-year plan and 11th 5-year guideline(or program). As a result of the analysis, ‘Guideline’ is the future action plan and is more long-term, strategic, overall, and guidance than the ‘Plan’. The necessity of the Chinese government to change the ‘Plan’ into ‘Guideline’ is as follows: First, the internal factors of the economic system that has been gradually expanded since the introduction of the socialist market economy in 1994. Second, the ideology of the Communist Party changed, and it was due to the fact that the ruling party abandoned the vested interest in exercising supervisory control over state-owned Enterprises. Third, due to institutional change like adopting new National Development Planning Committee from old National Planning Committee. Fourth, the Chinese government has recognized that it is no longer possible to overcome the gap between urban and rural areas, the rich and poor between the coastal and inland areas, which have been deepened by the ‘Plan’. Therefore, in order to support the policy of the welfare sector represented by the harmonious society, it is necessary to approach the frame of ‘Guideline’ rather than the existing ‘Plan’. Lastly, the report which were shown through the accomplishments of the 10th 5-year plan and the 11th 5-year guideline, are excellent in the 11.5 period in the environment and the welfare sector.
