Reform plan to boost efficiency, mitigate risks

Major overhaul to help optimize, adjust institutional responsibilities in key areas

China has released a plan on reforming Party and State institutions, a move that will help improve national governance efficiency and tackle risks and challenges in order to promote high-quality development.

A central financial commission will be set up to strengthen the Party's centralized and unified leadership in financial supervision and management, according to a circular jointly issued by the Communist Party of China Central Committee and the State Council, and made public on Thursday.

The commission, which will help coordinate the functioning of the CPC Central Committee, will shoulder responsibilities for formulating plans, coordinating related sectors and following up the implementation of financial policies to ensure the nation's financial stability and sound development, according to the circular. It will also be responsible for studying and reviewing major issues and policies in the financial sector.

A central financial work committee will be set up to strengthen the unified leadership over the Party's work in the financial sector, which will involve Party building, strengthening ideological, organizational and disciplinary work, and improving conduct of financial workers, the circular said.

In addition, a national financial regulatory administration will be set up under the State Council to strengthen the country's financial regulation system and prevent major financial and ethical risks. The new administration will unify the regulatory responsibilities of all financial sectors, except for securities, and oversee the supervision of financial holding companies by the People's Bank of China, the nation's central bank, and improve the management of State-owned financial capital.

Reorganization of the financial system is an important part of the Party and State institutional reform, Hao Dong, deputy director of the Department of Strategic Philosophy, at the Party School of the CPC Central Committee, told Xinhua News Agency.

With the first session of the 14th National People's Congress passing the State Council's institutional reform plan, the focus is now on optimizing and adjusting the institutional responsibilities in key areas, such as science and technology, and strengthening financial regulation and highlighting the crucial links of economic and social development, Hao said.

The CPC Central Committee will also establish a central science and technology commission. According to the circular, it will strive to push for national technological innovation; examine and approve major strategies, plans and policies for the sector's development; and coordinate efforts to resolve major issues of strategic, guiding and fundamental significance.

As part of a plan to strengthen innovation in the field of technology, China will reorganize the Ministry of Science and Technology under the State Council, with the mission to focus on strategic planning and macro-management, while promoting the economic application of scientific research and innovation and integrating technology with economic and social development.

The aim is to establish a new national system for technology development and further promote self-reliance in technology to strengthen strategic emerging industries and upgrade the economy, Hao said.

The circular said the CPC Central Committee will set up an office for Hong Kong and Macao affairs, based on the existing Hong Kong and Macao Affairs Office of the State Council, in order to implement the principle of "one country, two systems" and uphold national security.

The CPC Central Committee will also establish a social work department to coordinate efforts in advancing grassroots-level governance over Party-related work in national industrial associations and business organizations, the circular said. Party committees at the provincial, municipal and county levels will set up their social work departments accordingly.

The circular made clear reforms in other State institutions, including the NPC, China's top legislature, and the National Committee of the Chinese People's Political Consultative Conference, the top political advisory body.

It said related reforms at the national level should be completed before the end of this year, while those related to the sub-national level should be completed before the end of 2024.