The Chinese People's Congress has approved the largest government reorganization in Beijing in a long time. As expected, the almost 3,000 hand-picked delegates voted in favor of the Chinese party leadership's plan for institutional reform at their week-long annual meeting in Beijing today.
In view of the growing pressure from the USA, the goal is a better starting position in international competition and more technological independence. The conversion is also associated with job cuts: Five percent of the jobs are to be eliminated, as the plan shows. It is the highest number since the last extensive restructuring in 1998.
US "containment policy".
A new Commission for Financial Supervision will be created, which will partially take over the previous functions of the central bank. This is intended to better coordinate the control of banks, insurance companies and innovative financial platforms as well as consumer protection. The Ministry of Science and Technology will also be reorganized and a separate national authority will be created to manage the increasing amounts of data.
From a Chinese perspective, the US is increasingly trying to cut off China's access to technology with export controls, sanctions and other restrictions. With this "containment policy," the United States and the West wanted to hinder the rise of the world's second-largest economic power, as Xi Jinping complained on the sidelines of the People's Congress earlier this week.
"In the face of international technological competition and the serious situation of external containment pressure, we need to further organize our technological leadership and management system to better coordinate our strengths and overcome challenges in core technological areas," said a State Council document on restructuring . This will help China to "accelerate technological independence at a high level".