‘Too big and too powerful’: why Xi Jinping is reining in China’s economic planning agency
National Development and Reform Commission will lose a number of key responsibilities under government revamp, leaving it significantly weaker
China’s economic planning agency, a legacy of the command economy days that gained new power during the era of rapid state-led growth, will be significantly weaker under a government reshuffle announced on Tuesday.
The National Development and Reform Commission, known as the “little cabinet”, has been a formidable power centre in the world’s second-biggest economy, with its portfolio ranging from approving high-speed railway projects to the electricity rates for every household. It will remain one of the 26 bodies under the State Council, but many of its functions will be taken over by other agencies, according to the plan presented to the National People’s Congress.
Under the revamp, which is expected to be endorsed by the legislature later this week, the NDRC will lose responsibility for creating development zones to a new natural resources ministry, while its climate change unit will be transferred to the environment ministry. It will no longer approve agriculture investment projects – that responsibility goes to the new agriculture and rural affairs ministry – and its antitrust team will come under the new market supervision administration.
In addition, its oversight of “key national projects” will be transferred to the National Audit Office, and the new health commission will take over pricing of medicines and health care services.
