Preparing for reform in China’s finance, science and technology

The reform plan, which foresees a change in the structure of the State Council, which functions as China’s cabinet, will restructure its regulatory and supervisory powers in these areas with new administrative bodies to be established in the financial sector and science fields. and technology. .

The draft resolution of the “Institutional Reform Plan of the State Council” was submitted to parliament for discussion by delegates at the 14th General Assembly of the Chinese National People’s Congress (NCC).

The reform plan provides for the creation of a new regulatory agency in the financial sector and the reorganization of the supervisory powers of existing regulatory agencies, while establishing a science and technology committee affiliated with the ruling Chinese Communist Party (CCP), that will reorganize the planning and decision-making powers of the different ministries in this matter.

TECHNOLOGICAL SELF-SUFFICIENCY MOVEMENT

The comprehensive restructuring of the State Council, which is China’s top executive body, is expected to strengthen the role of the party’s central leadership in decision-making and support China’s self-reliance in the field of technology.

Speaking at the congress, President Xi Jinping said the reform plan aims to deepen structural reform in the financial sector and strengthen the Party’s unified leadership in science and technology.

Stressing the continuing need for institutional reform, Xi stressed the need to develop the institutional structure in Party and state organs, distribute functions more effectively, improve institutions and mechanisms, and achieve smooth operation and more effective administration.

TRANSFER OF AUTHORITY BETWEEN INSTITUTIONS

The reform plan is intended to establish a supreme regulatory body that will oversee all banking and insurance assets in the financial sector, excluding securities.

The new body, to be called the “National Financial Regulation Commission”, is expected to fully assume the existing powers of the China Banking and Insurance Regulatory Commission (CBIRC) over time.

The new body will also take over the duties of the People’s Bank of China (PBoC) to supervise the day-to-day activities of banks and financial companies and to protect consumers.

In addition, the supervisory powers of the China Securities Regulatory Commission (CSRC) over investor protection will also be transferred to the new body.

In the new structure, the CSRC will become a body directly subordinate to the State Council, while the authority to approve corporate bonds will be transferred from the National Development and Reform Commission (NDRC) to this commission.

On the other hand, the reform seeks to eliminate the local units of the Central Bank and more effectively manage state financial capital.

TO AUDIT MORE THAN $50 BILLION OF ASSETS

According to official data, China’s financial institutions manage a total of 413 trillion yuan (approximately 59.2 trillion US dollars) in financial assets. Of this, 374 trillion yuan (approximately 53.6 trillion US dollars) is in banking, 27 trillion yuan (3.8 trillion US dollars) in insurance and 13 trillion yuan (1.8 trillion US dollars) in securities.

The Secretary General of the State Council, Xiao Cie, in his statement on the presentation of the bill to Congress, emphasized that the new regulatory commission will be in charge of the supervision of financial institutions other than stocks and exchanges, and thus In this way, it is intended to protect investors and eliminate systemic risks.

“The new body will be the solution to the long-standing contradictions and problems in the financial spheres,” Xiao said. saying.

CONTROL OF THE MATCH IS INCREASING IN SCIENCE

The reform plan provides for the establishment of a new science and technology committee affiliated with the Communist Party, while the Ministry of Science and Technology is being restructured.

The new committee, estimated to be called the “Central Science and Technology Committee”, will assume planning and decision-making powers from the Ministry of Science and Technology, while some of the ministry’s powers and responsibilities will be distributed among other ministries.

In the new structure, the ministry’s authority to decide on scientific agricultural and rural development plans and policies will be transferred to the Ministry of Agriculture and Rural Affairs, and the authority to decide on industrialization and high-tech development plans and policies will be transferred to the Ministry of Industry and Information Technologies.

The Ministry will be authorized to evaluate and execute special research projects, and its task will be limited solely to the supervision and management of research institutions.

The reform aims to achieve an understanding of the adequacy of scientific and technological research, and to centralize planning and decision processes.

STEP AGAINST CONTAINMENT EFFORTS

Stressing that China should focus on developing self-reliance in the field of technology “in the face of increasing global competition and external containment and suppression efforts,” Xiao said, “In the face of this dire situation, it has become imperative to achieve a high level of technological and scientific self-sufficiency through self-development.” used his statements.

Stating that the new committee will strengthen the Party’s control over the sector, Xiao stressed that the restructuring of the Ministry of Science and Technology will also put necessary management processes in order and provide coordination to overcome difficulties encountered in developing critical technologies.

President Xi accused the United States and Western countries of trying to suppress China’s development at a panel discussion he attended at the Chinese People’s Political Consultative Conference (CHSDK) general assembly, which was held simultaneously with UNCHK.

Stating that external conditions related to China’s development are changing rapidly and uncertainty and unpredictability have increased, Xi said: “Western countries under the leadership of the US are implementing a policy of containment and all-out pressure against China. This poses unique obstacles to the development effort.” he said.

In another thousand panels, President Xi stressed the importance of becoming self-reliant in the field of technology, saying, “In the face of increasing international competition, we must determine new paths in development, gain new momentum, and develop new forces. Eventually, it all comes down to technology.” he had made the comment about it.

THE CENTRAL PUBLIC BUREAUCRACY WILL BE REDUCED BY 5 PERCENT

The reform plan will also introduce new regulations regarding the powers and responsibilities of many ministries and administrative bodies.

The plan provides for the establishment of a data office within the National Development and Reform Commission (NDRC).

The office is expected to be responsible for coordinating the implementation and sharing of data resources with the creation of central data-connected institutions.

With the reform, the National Administration of Public Complaints and Advice will also be incorporated into the Council of State to respond more effectively to public complaints.

The reform plan also contemplates a 5% reduction in the staff of the State Council bodies, and the transfer of resources obtained from the reduction of labor costs to key areas of work.

The bill will be put to a vote in the plenary session of Congress on March 10. (AA)