Deepening Administrative Reform to Promote Economic and Social Development

Pushing Forward Institutional Reform

According to the Plan on Institutional Reform and Functional Transformation of the State Council passed by the National People’s Congress in 2013, the State Council carried out a series of regrouping and pruning, cutting the number of its ministries and commissions from 27 to 25.

The reshuffle included: dismantling the Ministry of Railways and separating it into administrative and commercial arms – the State Railway Administration and the China Railway Corporation; combining the Ministry of Health and the National Population and Family Planning Commission to set up the National Health and Family Planning Commission, which is responsible for health care, public health resources and family planning services; initiating the China Food and Drug Administration; dissolving the General Administration of Press and Publications, and the State Administration of Radios Film and Television to set up the State Administration of Press, Publications, Radio, Film and Television; and restructuring the State Oceanic Administration and the National Energy Administration.

So far, the functions, staff and facilities of a dozen government departments have been redistributed and rearranged. And overlapping functions have been overhauled to explicitly redefine the scope of responsibilities of and relations between different departments. One example is disentwining the power crossover among diverse authorities in the fields of investment planning, food security risk surveillance and assessment, and entry-exit inspection and quarantine. Another is placing real estate registration solely in the trust of the Ministry of Land and Resources.

China has promulgated a document to promote institutional reform among local governments, encouraging them to design government structures in accordance with local situations and to standardize government managment.

Innovation in Administrative Management

The teetering recovery of the global economy and downward economic pressure notwithstanding, the Chinese government did not scramble to stimulate growth by increasing the fiscal deficit and money supply or by rolling out a massive stimulus scheme. Instead, it made clear that as long as GDP growth stays within a reasonable range and employment and inflation remain at healthy levels, China will stay the course of growth pattern transformation and economic restructuring. China maintains consistency and stability while constantly fine-tuning its macroeconomic policies according to the situation on the ground, so achieving effective macro-level regulation.

Delegating powers to the market can’t work well without necessary surveillance and regulation, which calls for a transparent corporate credibility system. Due punishment should be handed down to companies and individuals who disrupt market order, infringe intellectual property rights, or conduct fraudulent trade practices, to foster the environment for fair competition.

In the realm of foreign investment, China introduced the negative list system, first implemented in the China (Shanghai) Pilot Free Trade Zone. The government is also buying more public services from social organizations. 

Law-based Administration

To achieve the goal of an honest government that rules according to the law, China has enhanced regulation of the execution of administrative power.

Strict restrictions on government spending have been adopted. The new central leadership has pledged not to sanction any new government buildings within its term, not to expand the size of government, and to control public expenditure on official receptions, vehicles and overseas trips. In November 2013 the CPC Central Committee and the State Council promulgated a decree of detailed provisions on the management and spending of public funds, which consolidated the frugality drive. And the Budget Law, promulgated in August 2014, also reined in government revenue and expenditure.

Governments at all levels are working to enhance transparency, making public their financial budgets and the list of administrative powers. The public and media are encouraged to strengthen their supervision of the government through channels and platforms established by means of modern information and communication technologies. For example, to better carry out major policies, the State Council authorized independent and professional institutes to conduct third-party evaluation on the implementation of several procedures.

The Fourth Plenary Session of the 18th CPC Central Committee, convened in October 2014, adopted a decision to comprehensively advance the rule of law. It highlighted the need to promote the rule of law in government organizations, functions, powers, procedures and accountability to speed up the establishment of a law-based government.