The Communist Party strengthens government control through organizational reforms The Ministry of Science and Technology is reorganized and supervised by the party, and a new supervisory department for financial institutions is established: Tokyo Shimbun TOKYO Web

President Xi Jinping (bottom left) = AP

[Beijing = Baishanquan]China’s National People’s Congress (National People’s Congress = equivalent to the National Assembly) on the 10th passed an organizational reform plan of the State Council (government) to strengthen the management system of finance, science and technology, data, etc.Xi Jinping（fukinpei）The leadership will further strengthen the control of the government by the Communist Party in order to respond to domestic and foreign risks such as the deepening confrontation with the United States and financial instability.

The full picture of the institutional reforms, including the party, is expected to become clear after the end of the NPC. According to Hong Kong newspapers, the plan to establish a new agency under the direct control of the party to handle police and intelligence activities is expected to tighten domestic pressure.

The Ministry of Science and Technology will be reorganized into an organization that specializes in managing and supervising basic and applied research, and the newly established Central Science and Technology Commission will oversee the ministry.Xiao Jie（information）・The State Councilor and Secretary-General of the State Council (deputy prime minister level) explained that “the party will intensively guide science and technology,” and will also strengthen its involvement in advanced technology fields such as semiconductors, which are subject to US sanctions.

In finance, the State Financial Supervisory Administration was established to supervise financial institutions and companies. It will consolidate some of the responsibilities of the People’s Bank of China (the central bank) and the China Securities Regulatory Commission. Details of the party’s division have not been announced, but some speculate that a “Central Financial Commission” will be set up within the Communist Party to tighten oversight of the capital markets.

Financial institutions in Henan last year sparked protests after depositors were unable to withdraw their deposits. The risk of bankruptcy of local financial institutions is increasing, and the National Development and Reform Commission pointed out, “It is necessary to carry out reforms in an orderly manner to overcome the predicament of small and medium-sized banks.”

The State Relations Bureau, which receives petitions from citizens, will be upgraded to an organization under the direct control of the government, and will appeal its stance to protect consumer rights. In addition, a “National Data Bureau” will be newly established to centrally manage and supervise data collected by companies and others.