The article exams the shift from government to governance, from good government to good governance, which are resulted from EG. It clarifies the challenges of EG to the traditional concept of nation-state sovereignty, and analyzes the internal relation between EG and governance’s shift. The article points out that Chinese reform and open policy in a certain sense is to participate actively in EG that has a huge impact not only upon our economy but also upon our social life including politics. EG requires us to develop democracy, legal system, efficiency, transparency, responsibility, probity, cooperation, participation and justice, by all of which good governance is characterized. This good governance is the democratic politics of our socialism.