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China launches sweeping institutional reform
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Chinese lawmakers will on Tuesday afternoon deliberate a State Council proposal for institutional restructuring of the government, which involves the installation of "super ministries" on energy, transportation, industries and environment protection.

State Councilor Hua Jianmin, also Secretary General of the cabinet, is to make an explanation on the plan at the First Session of the 11th National People's Congress (NPC).

Following are the highlights of his report distributed to journalists before the meeting:

SUPER MINISTRIES

The target for this round of government reshuffle is to explore a "super ministry" system to streamline government department functions, and to form some "bigger departments" to strengthen macro-economic regulation, maintain national security of energy supply, integrate information development and industrialization.

It is also aimed at streamlining the country's transportation system by setting up the ministry of transport to annex civil aviation and postal services, and urban public transportation management of the Ministry of Construction.

The State Environmental Protection Administration will be elevated to be ministry of environment protection, and the Ministry of Health empowered with the function to oversee food and drug safety.

The State Council will have 27 ministries and commissions apart from the General Office after the reshuffle, compared with the present 28.

MACRO-REGULATION

To form a scientific, authoritative and effective macroregulation system by reasonably rearranging government functions for macroregulating departments,

-- The National Development and Reform Commission (NDRC) will focus on macro-regulation and fade out from involvement in micromanagement of the economy and reduce its examination and approvals of specific projects.

-- The Ministry of Finance shall reform and improve its management over budget and taxation. The People's Bank of China shall strengthen the system of monetary policies, and improve the mechanism of exchange rate formation.

NATIONAL ENERGY COMMISSION

To strengthen the government management on the energy sector, a high-level national energy commission is to be established, with a national bureau of energy set up as its working office under the NDRC.

The new bureau will integrate the NDRC's functions on energy management, the functions of the National Energy Leading Group and the functions of the Commission of Science, Technology and Industry for National Defense on nuclear power management.

MINISTRY OF INDUSTRY AND INFORMATION

The new ministry of industry and information will integrate the NDRC's functions on industry and trade management, the functions of the Commission of Science, Technology and Industry for National Defense except that on nuclear power management, and the functions of the Ministry of Information Industry and the State Council Informatization Office.

A state bureau of science, technology and industry for national defence will be formed under the new ministry. The State Tobacco Monopoly Administration will merged into the new ministry.

The Commission of Science Technology and Industry for National Defense, the Ministry of Information Industry and the State Council Informatization Office will be dissolved.

MINISTRY OF TRANSPORTATION

The ministry of transportation will integrate the functions of the Ministry of Communications and the General Administration of Civil Aviation and the Ministry of Construction's functions on urban public transportation management.

A state bureau of civil aviation will be formed under the new ministry. The State Post Bureau will be annexed.

The Ministry of Railways will continue to exist. Reforms will be continued on rail transportation system.

MINISTRY OF HUMAN RESOURCES AND SOCIAL SECURITY

The new ministry will integrate the functions of the Ministry of Personnel and the Ministry of Labor and Social Security. A state bureau of civil servants will be established under the new ministry. The State Administration of Foreign Experts Affairs will be part of the new ministry.

The Ministry of Personnel and the Ministry of Labor and Social Securities will be dissolved.

OTHER REFORMS

-- To form a ministry of environmental protection, replacing the State Environmental Protection Administration.

-- To form a ministry of housing and urban-rural construction, replacing the Ministry of Construction.

-- To put the State Food and Drug Administration under the Ministry of Health.

(Xinhua News Agency March 11, 2008)

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