BEIJING, March 17 (TMTPOST) – China has released a plan to set up commissions on technology and finance under the direct oversight of the Communist Party of China (CPC) rather than the State Council, the cabinet, delivering a clear signal that the party is consolidating its leadership in the sectors of technology and finance.   

According to the organizational reform plan published by the Xinhua News Agency, a central commission on finance will be set up to enhance the centralized and unified control of financial operations by the CPC Central Committee. As a top-level body reporting directly to the party leadership, the commission will be accountable for the top-level design, overall coordination, comprehensive promotion and supervision of the implementation of financial stability and development. Furthermore, it will examine and discuss significant policies and issues in the financial industry, among other responsibilities. The plan also stated that an office under the commission will be established.

The new establishment is aimed at reinforcing the implementation of strategic measures to ensure financial security, as China currently faces potential financial spillover from certain Western countries that could destabilize the financial sector. The aftermath of the U.S. Fed’s aggressive interest rate hikes, exemplified by the recent collapse of SVB, continues to impact other countries, including China. Additionally, stressed debts from certain property developers pose financial risks, particularly to small and medium-sized financial institutions. According to Chinese experts, ensuring financial stability and managing risks are crucial this year.

In addition to the central commission for finance, the plan also includes the establishment of a central commission on science and technology to strengthen the CPC Central Committee’s centralized and unified leadership over the field of science and military and civilian technologies. The commission will have various functions, such as promoting the development of a national innovation system and structural scientific and technological reform. It will also examine and discuss major strategies, plans, and policies for the advancement of science and technology in the country. Furthermore, it will coordinate efforts to tackle significant issues of strategic and fundamental importance in the field of science and technology.

The plan states that since the 18th CPC National Congress in 2012, there have been efforts to reform party and government institutions, resulting in significant systemic and comprehensive changes in their functions. However, the institutional setup and allocation of functions of party and government institutions have not yet fully adapted to new tasks, necessitating further reforms and adjustments. The plan highlights that the 20th CPC National Congress in October 2022 made important arrangements for deepening the reform of party and government institutions, which is of great significance and has far-reaching implications.

The objective of the reforms is to establish a functional system of party and government institutions that is well-developed, procedure-based, and efficient. To achieve the aim of refining the party’s leadership over socialist modernization, the plan calls for deeper institutional reforms in key areas. It emphasizes the need for optimization of the division of functions, improvement of institutions and mechanisms, and enhancement of operational and managerial efficiency.