China plans crucial changes in ministries, market to have a major role

March 14, 2013

The State Council of China has outlined new measures which include the dismantling and merging of several crucial Cabinet-level ministries with the aim of reducing the government’s role and promoting non-governmental and market forces.

These changes have been planned at the time when China is witnessing leadership change as Xi Jinping will be appointed President in the coming week. Li Keqiang is expected to succeed Wen Jiabao as Premier and head of the State Council.

What are the changes planned?

Changes planned are:

Breaking up the giant Ministry of Railways which has recently been entangled in corruption scandals. It will function under the Ministry of Transport, which will handle its administration whereas its commercial functions will be handled by a separate China Railway Corporation company.
Merging the powerful Family Planning authority, in charge of enforcing family planning rules, with the Health Ministry.
Formation of a unified National Oceanic Administration (NOA) to strengthen and centralise China’s maritime law enforcement forces amid a increasing number of disputes, with Japan over East China Sea islands and with half a dozen countries in the South China Sea.

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