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The advent of the digital intelligence era is profoundly transforming the operation of the economy and society, while posing new challenges to the relationship between government and market. Based on the analytical framework of government and economics, this paper systematically investigates the shifts in economic forms, challenges confronting governmental functions, and the restructuring of governmental functions in the digital intelligence era. The study reveals that the domination of data, the expansion of platform-based organizations, the extensive involvement of algorithms in resource allocation, and the polarization of employment structures are reshaping manifestations of market failure, income distribution mechanisms and the macro-governance environment, thereby subjecting the traditional system of governmental functions to novel adaptability dilemmas. Against this backdrop, the core of governmental function restructuring lies not in expanding or contracting the scope of government intervention, but in remodeling the modus operandi of government. The evolution of governmental functions in the digital intelligence era is prominently manifested in four transitions: from a resource allocator to a rule-maker, from ex post rectification to forward-looking governance, from income redistribution to capacity building, and from an economic administrator to a growth enabler. To accomplish such transformation, parallel progress must be made in organizational restructuring, establishing risk governance frameworks, and refining growth-enabling systems, so as to forge a novel governance paradigm compatible with the development of the digital intelligence economy. This paper offers a fresh analytical perspective for comprehending the evolution of government-market relations and advancing the modernization of national governance amid the digital intelligence era.
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