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How China’s latest government overhaul is shaping up, and what it says about the Communist Party’s priorities

  • New bodies dedicated to issues such as financial risk and social stability are being established at a central and local level
  • Shake-up is seen by some analysts as part of wider moves to strengthen the party’s control over key policy areas and organs of government

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Illustration: Lau Ka-kuen
Since taking the helm of the Communist Party in 2012, President Xi Jinping has constantly been overhauling China’s massive system of state and party organs to reflect Beijing’s shifting priorities.
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In the latest restructuring plan, rolled out in the spring of 2023, Beijing moved to assert more direct party control over a wide range of key policy areas, including science and technology, the financial sector and social stability.

A year later, the nature and scale of the restructuring is starting to take shape as new agencies covering these areas have been set up by central and local governments.

Looking closely at their operations provides an opportunity not just to see how they operate in practice, but also helps shed more light on Beijing’s policy priorities and the challenges it faces.

For example, the establishment of new financial regulatory bodies by both central and provincial governments highlights the sense of urgency around tackling financial risk, while the newly established National Data Administration will play a key role in China’s plans to develop artificial intelligence by managing data resources.
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The top Hong Kong and Macau policy office will also report directly to the party’s Central Committee, rather than the State Council, the country’s cabinet, to improve coordination with other branches of government as Beijing seeks to tighten its control over the city.

The overhaul is an “important part of the ruling Communist Party’s effort to channel nationwide resource-to-technology self-reliance, while strengthening the party’s control over financial and social risks”, as it faces an increasingly hostile West, according to Alfred Wu, an associate professor with the National University of Singapore’s Lee Kuan Yew School of Public Policy.

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