Finance to technology, Xi is bringing key areas under CCP control. He wants to treat America better

TeaMedia attention to the meeting of the ‘two sessions’ focused on the work report submitted by outgoing Premier Li Keqiang. But President Xi Jinping plans to overhaul Chinese state governance with an eye on the US.

More than 20th The party congress, the National People’s Congress (NPC), held in October 2022 excited many Chinese politicians, owners of state-owned enterprises, entrepreneurs and the military leadership. The NPC allows them to propose policy ideas, including budgetary allocations – although overall proposals require the approval of the Chinese Communist Party (CCP).

But the capacity of state institutions such as the State Council is set to be further curtailed as Xi tightens his grip on the remaining state institutions by locking the CCP down.

Rumors have been circulating about reforms in the Council of State for the past week before the 14th NPC summoned. Now, further details have emerged as to what those improvements could include.

Analysts have suggested that Xi may strengthen his control over the finance and technology sectors by bringing some ministries under the direct supervision of the party and eliminating bureaucratic control of the State Council.

based on evaluation Xinhua News Agency Xi is quoted as saying that the reform plan is geared towards “deepening”[ing] Structural Reform of the Financial Sector” and “Integrated Leadership on Science and Technology”.

Xinhua pointed to the setting up of two new commissions, one for finance and the other for science and technology. These commissions are likely to be run directly by CCP officials to guide regulation of the financial sector and guide the development of the science and technology sector.

Rumors about State Council reform were proved correct late on 7 March when a new commission called the ‘State Financial Supervision and Administration Bureau’ was announced by the state media.

“Take unified responsibility for the supervision of the financial industry other than the securities industry, strengthen institutional supervision, behavioral supervision, functional supervision, penetrating supervision and continuous supervision, take overall responsibility for protecting the rights and interests of financial consumers, strengthen risk management and prevention and disposal, and investigation and disposal of violations of laws and regulations in accordance with the law, “state media informed of On the role of the new financial body.

Another major proposed reform for the Council of State was step Some responsibilities of the Ministry of Science and Technology to other ministries so that it can focus on Xi’s vision of technological self-reliance.

The Ministry of Science and Technology had the responsibility of ‘promoting agriculture and rural development through science’ Have been taken The Ministry of Agriculture and Rural Affairs was entrusted with the responsibility of ‘promoting the organization and preparation of science and technology to promote social development plans and policies’ and the National Development and Reform Commission and some other government ministries.

The thrust of these reforms appears to be to bring more decision-making under unified bodies that can be controlled directly by Xi.

“Party Committees as [and] The commissions will be given overall decision-making mandate in this restructuring plan, leaving only execution roles for the respective composition of the State Council,” Said Deng Yuwen, an independent researcher in the US.

Beijing has been frustrated by slow progress in developing an indigenous innovation and manufacturing base for semiconductor technology, despite spending billions to solve the problem.


Read also: China wants an AI chatbot like ChatGPT. But it challenges the CCP’s censorship regime


prompted by US actions

The shift in focus from science and technology research to developing indigenous semiconductor technology and commodity supply chains is reflected by the sectors that are represented in Delegate 14.th NPC and CPPCC meeting

according to a Analysis Around 100 delegates were selected by Nikkei Asia Review to attend the ‘two-session’ meeting (Lianghui) They come from the semiconductor and defense manufacturing industries and are related to the companies that have been targeted by the US sanctions. Meanwhile, Internet entrepreneurs such as Tencent’s Pony Ma, Baidu’s Robin Li and Sogou’s Wang Xiaochuan were not invited to join the CPPCC for the next five years.

On 7 March, Xi used a new ‘tifa’ – “profound and complex changes in the international and domestic environment.” Tifa is political ideas proposed by the CCP which may indicate a change in policy thinking.

Xi’s speech underlined the serious challenges in the international situation that China needs to respond to and prepare for. Xi was speaking to members of the Democratic National Construction Association and the Federation of Industry and Commerce as part of 14th CPPCC.

“We must remain calm and firm, and calmly watch the profound changes in the international situation, and calmly respond to various kinds of risk challenges. There is a need to develop precise knowledge, but maintain strategic determination, cutting green hills, not relaxing and not being afraid of various risks. Strategic goals. We must move forward unrelentingly,” Said Xi in his speech

The directive to “observe peacefully” suggests Xi’s concerns about his bureaucracy’s over-reaction to the current international environment and its inability to coordinate the actions of the Chinese bureaucracy – something Xi has expressed frustration with in the past.

In his speech, Xi said that going forward, the challenges will be more serious.

Xi Jinping said, “In the coming times, the risks and challenges we face will only increase and become more serious.”

If Xi’s warnings about dire changes weren’t enough, he made comments aimed against the US.

“In particular, Western countries led by the United States have implemented all-round control and suppression of China, which has presented unprecedented serious challenges to China’s development. At the same time, the country is also facing many difficulties Like repeated waves of Covid and the downward pressure on the economy is increasing. Said Xi spoke about the challenges facing China.

Xi’s direct attack on the US is rare as frustration over the current era of US-China competition has hindered China’s vision of economic growth and becoming self-reliant in technology innovation.

Xi’s comments on China’s challenges in the international context were echoed at the first official press conference of the new Chinese foreign minister. linghui meeting. Qin Gang held a two-hour-long press conference in Beijing, where the overseas Chinese press were allowed to ask questions.

“The US ‘Indo-Pacific strategy’ claims freedom and openness, but in reality, it is ganging up and engaging in various closed and exclusive small circles; claiming to maintain regional security, but actually provoking conflict and planning an ‘Asia-Pacific version of NATO’; “Preaching to promote regional prosperity, but in fact, it seeks to “separate and break the chain” and undermine the regional integration process,” Qin Gang said during the press conference.

When asked about Taiwan, Qin Gang opened a copy of the Chinese Constitution and Said That “Taiwan is part of the sacred territory of the People’s Republic of China. It is the sacred duty of all Chinese people, including compatriots in Taiwan, to carry out the great task of reunifying the motherland.”

Beijing’s reforms in the financial sector, science and technology and attacks on the US have exposed Xi’s struggles in all areas from the economy to foreign affairs. Despite wanting to take a less confrontational approach, Xi uses rhetoric of opposition to the US.

The meeting of the ‘Two Sessions’ reaffirmed that Beijing views all important aspects of its thinking on domestic and international affairs through the prism of geopolitical competition with the US.

The writer is a columnist and freelance journalist. He was previously China media correspondent with the BBC World Service. He is currently a MOFA Taiwan Fellow based in Taipei and tweets @aadilbrar. Thoughts are personal.

(Edited by Prashant)