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China to merge banking, insurance regulators in biggest ministry shake-up

Press Trust of India  |  Beijing 

today unveiled plans for the biggest ministry shake-up in years, including the merger of its and regulators to reduce risks to its financial system from a rapid build-up in debt.

The massive reshuffle plan of various ministries is aimed at making the government better-structured, more efficient, and service-oriented.

is also due to announce appointment of new ministers and officials, including the foreign minister, as part of changes in every five years.

The reform plan will be submitted to the ongoing first session of the National People's (NPC) for deliberations, state-run agency reported.

There will be 26 ministries and commissions of the after the reshuffle, the report said.

The sweeping changes include the merger of China's and regulators and the setting up of a special bureau to oversee immigration issues, the Hong Kong based Morning Post reported.

China is in the midst of a battle against financial risk, as credit in the world's second largest has exploded since the financial crisis a decade ago.

Financial regulators have cracked down on major companies -- even taking over Anbang this year -- to get a handle on building risk and unwieldy debt that some analysts worry pose a serious threat to China's financial stability.

Among the new entities are a ministry of natural resources, a ministry of veterans' affairs and a ministry of emergency management.

The plan also includes the merger of the ministry of culture and the into one.

The power of the influential often dubbed the little will be reduced under the new plan.

The move is part of Xi Jinping's plan to retool the entire administration to give the ruling greater control and a more effective platform to govern the world's most populous nation.

Xi, 64, is set to continue for a life term as the NPC approved the removal of the two-term limit for the and the vice

The new plan also intends to cut bureaucracy and turf wars by removing overlapping duties and responsibilities, report said.

There will be new administrations under the or the central cabinet, such as an international development cooperation agency and a state immigration administration.

Compared with the current setup, the number of ministerial-level entities are reduced by eight and that of vice-ministerial-level entities by seven, the report said.

The reform, which aims to push forward the institutional restructuring in key areas, will strengthen the government's functions on economic management, market supervision, social management, public service, and ecological and environmental protection, it said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 09:55 IST