trending Market Intelligence /marketintelligence/en/news-insights/trending/dipucv1if9b-pitlu0jsxq2 content esgSubNav
In This List

Report: China plans sweeping government overhaul to empower Communist Party

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Report: China plans sweeping government overhaul to empower Communist Party

A sweeping government overhaul would give the Communist Party of China, or CPC, greater control over everything — from the country's financial services to entertainment, Bloomberg News reported March 6, citing two people familiar with the matter.

The changes are part of a proposed "CPC leadership system" approved by the party on Feb. 28, the sources said. Details of the overhaul, which called for merging more than a dozen state agencies, will be revealed March 17 when the National People’s Congress votes on the plan.

Beijing expects ministries to complete the reorganization within the year, said the sources, who requested anonymity because details have yet to be made public. In some cases, the party will completely take over state agencies, the sources said.

The planned overhaul is China's most decisive shift yet from the 1980s reforms led by Deng Xiaoping, which aimed at professionalizing the government. Deng had advocated "the separation of the party and government."

But under President Xi Jinping, "a primary task of deepening reform of the party and state institutions is to strengthen the CPC's leadership in every sector,” the Central Committee said March 4, citing a decision during the body's conclave last week in Beijing.

For Xi, the proposals represent his five-year push to reassert party control. Taking the cue from Mao Zedong, he quotes the former leader: "east, west, south, north and center — the party leads everything."