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Chinese authorities prepare largest government and institutional reforms

Chinese authorities

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Chinese authorities are preparing one of the country’s largest government and institutional reforms, targeting mostly the financial sector. The reorganization, which includes a merger of the bank and insurance regulator, and the granting of new powers to the central bank, is a key part of President Xi Jinping’s agenda and his desire to consolidate the power of the Chinese Communist Party.
The long-awaited measures to tighten the control over the banking and insurance sector of the country, which has a total value of 42 trillion USD, comes amid the authorities’ attempts to curb risky credit practices and reduce high corporate indebtedness.
The measure also comes days after the country’s parliament approves with almost complete unanimity the dropping of the limit for the number of mandates of the country’s president.
According to experts, the main change in the announced reforms is precisely the merger of financial regulators. The central bank will deal with the macro, and the merged regulators will be responsible for the more specific part of thing.
The changes include the establishment of a national market management bureau. It will be responsible for price control and enforcement of anti-trust legislation, taking on these functions from the National Commission on Development and Reforms, the Ministry of Commerce and the State Council.
The government also plans to create seven new ministries, such as natural resources, the environment, emergency management, agriculture, culture and tourism, veterans, and the National Health Commission. The heads of the new ministries, departments and regulators will be announced before the end of the annual session of parliament on March 20th.
The proposed changes were discussed earlier in parliament Tuesday and are expected to be formally adopted on Wednesday. Once this happens, the Cabinet will consist of 26 Ministries and Committees.