The restructuring of the State Council this time exceeds outside expectations in scope, strength and other aspects. Dramatic adjustment is made in domains concerning the national economy and people's livelihood such as financial supervision, emergency management, market regulation, ecological resources, hygiene and health, in order to adapt to the new trend and meet new demands in a new era. The restructuring demonstrates great boldness of vision and mastery of skills within the greater framework of reform, which is bound to have a profound impact on advancing the modernisation of the nation's governance system and governance capability.
First of all, the restructuring shows the strategic thinking with an eye on the great trend of events, concentrating efforts on the "three tough battles" of forestalling and defusing major risks, carrying out targeted poverty alleviation, and preventing and controlling pollution. The merger of the Banking and Insurance Regulatory Commissions is to break down barriers between departments, curb the wild growth of insurance capital, and build up a solid "firewall" to prevent and control financial risks and safeguard financial security. "Whether initial prosperity in the country can be achieved depends on whether the rural living standard can be raised". Setting up the Ministry of Agriculture and Rural Affairs is to help advance the strategy of rural rejuvenation and lay a solid foundation for poverty alleviation. The environmental protection system has been upgraded four times in 30 year, from the Administration of Environmental Protection to the General Administration of Environmental Protection, and from the Ministry of Environmental Protection to the Ministry of Ecological Environment this time. This truly highlights ecological civilisation's strategic status being elevated to an unprecedented height, after being included into the overall plan [of promoting economic, political, cultural, social, and ecological progress.
Secondly, the institutional reform reflects a coordinated thinking of synergy and high efficiency. The formation of the Ministry of Natural Resources, Ministry of Ecological Environment, Ministry of Emergency Management and State Market Regulatory Administration organically integrates similar functions hitherto scattering in several departments to form a new system of greater resources, greater eco-environment, greater emergency management and greater markets. This changes the situation of "nine dragons running a river" and each department acting on its own, and corrects the defects of vague delimitation of functions and shirking responsibilities, so that functions and responsibilities become more optimised and coordinated to enable the operation of supervision to become more efficient and effective. The restructuring allocates powers scientifically, cutting eight ministerial-level units and seven vice-ministerial-level units, which will not only reduce administrative cost and improve administrative efficiency, but also streamline administration and institute decentralization to facilitate entrepreneurship and innovation.
Moreover, the restructuring reveals the heart of putting people first and governing for the people. Having entered a new era, the principal contradiction facing Chinese society has evolved into "the contradiction between unbalanced and inadequate development and the people's ever-growing needs for a better life." The institutional reform this time is with much emphasis on people's livelihood, focusing on what the grass-roots aspire after and where the popular will inclines. The establishment of the National Health Commission, State Medical Insurance Administration and Ministry of Culture and Tourism is aimed at improving the people's living quality through enhancing supply of public services and supervision on service quality. The formation of the Ministry of Natural Resources and Ministry of Ecological Environment is also aimed at breaking through the "surrounding smog" and well guarding green hills and blue waters, blue skies and white clouds, to let people live in a livable and comfortable environment. Such a foundation design that covers all the bases will weave a fine social safety net to improve people's well-beings and build a public service-oriented government.
At the same time, the administrative reform also shows the political commitment to overcoming obstacles and difficulties. The reform this time is intensive in scope and strength with many efforts devoting to solving institutional contradictions accumulated over a long period of time. For example, the tax-sharing system has been in practice for over two decades. Under this system, the division of financial and administrative powers between the central and regional governments is not quite reasonable. It also aggravates the "disease" of local governments relying their revenues on land sales and intensify their debt risks. Huge capital and complex interests are involved here, but the reform this time is determined to make adjustment despite all difficulties, no evading and no delaying. And enthusiasm and activeness of both the centraland regional authorities will be mobilised.
This year is the opening year of a new era, and also a crucial year to advancing comprehensive deepening of reform. The whole year's work depends on a good start in spring, the administrative reform in the spring of a new era is an important part of comprehensively deepening reform and also provides institutional guarantee and manpower support for the design and implementation of reforms in other domains. At the same time, the launch of the reform also demonstrates the confidence and determination of the team in power to advance reform and forge ahead.
14 March 2018