1、 1 Overview The National Peoples Congress(the NPC),Chinas top legislature,and the National Committee of the Chinese Peoples Political Consultative Conference(the CPPCC),the countrys top political advisory body,completed their annual meetings,known collectively as Lianghui,or Two Sessions,in Beijing

2、on March 13.Premier Li Keqiang delivered his last Government Work Report(the Report)before handing over to his successor.The Report provides a summary of the governments work in 2022,reviews the accomplishments of the past five years,and establishes the direction for both the government and the coun

3、try in the upcoming year.This years Two Sessions,occurring at a time when China faces increasing challenges both domestically and internationally,was a pivotal event for institutional reform,the establishment of new state leadership,and the introduction of various new economic policies.This memo pro

4、vides a summary of the key takeaways from the Two Sessions,highlighting their significance in shaping Chinas future direction.Chinas new line-up of top government leaders During the Two Sessions,President Xi Jinping secured an unprecedented third five-year term and appointed many people he has worke

5、d with closely throughout his career to top government positions.Notably,at the meeting,From now until the middle of the century,the central task of the Party and all Chinese people is to complete building China into a great modern socialist country in all respects and advance national rejuvenation

6、on all fronts.And the baton of this central task has now been historically passed on to our generation.President Xi Jinping Two Sessions 2023 Key Takeaways from Chinas 2023 “Two Sessions”2 Zhao Leji was elected as the Chairman of the Standing Committee for the 14th NPC,Wang Huning was elected chairm

7、an of the 14th National Committee of the CPPCC,and Han Zheng was chosen as Chinas Vice President.In addition,President Xi signed a presidential order appointing Li Qiang as Chinas Premier.Lis appointment was widely anticipated due to his high-ranking position in the Communist Party of China(CPC)and

8、extensive experience in economic management.However,his promotion breaks with tradition,as all previous Premiers have also served as Vice Premier.Lis career has been closely intertwined with President Xis,and he has spent considerable time working in Chinas economically vital eastern coastal region.

9、He is known for his pragmatic and pro-business approach.The new cabinet lineup retains the Central Bank governor and Finance Minister while appointing several ministers with corporate experience.This demonstrates the governments emphasis on professional expertise and policy continuity and is designe

10、d to boost market confidence while ensuring long-term stability.High-quality development as the top task The 20th National Congress of the CPC made high-quality development the top task of building China into a modern socialist country in all respects.Among other things,this reinforces the emphasis

11、on boosting science and technological capabilities to enable China to move further up the economic value chain and to compete in key sectors globally.This year marks the beginning of Chinas full implementation of the policies set forth in the 20th National Congress of the CPC.As emphasized by the ne

12、w Premier,Li Qiang,the task of the new government is to effectively implement the decisions and directives of the Party Central Committee,and translate the grand blueprint outlined at the 20th Party Congress into actionable plans.To this end,the Report highlights several priorities.5%GDP growth targ

13、ets to boost confidence and stabilize expectations The Report sets the GDP growth target at around 5%,lower than last years target of approximately 5.5%.This figure represents the lowest target since 1991,with the exception of 2020,reflecting the challenges and uncertainties posed by the pandemic an

14、d other external factors.Nevertheless,it aims to instill confidence and stability in both domestic and foreign investors,emphasizing the need for economic stability.To achieve its objectives,the government targets the creation of around 12 million new job opportunities and aims to maintain the CPI i

15、ncrease at around 3%.The fiscal budget deficit is projected to be 3%of GDP.The Report highlights the importance of societal stability,particularly following the shift from the dynamic-High-quality development is the top task of building China into a modern socialist country in all respects.President

16、 Xi Jinping Two Sessions 2023 This year marks the beginning of the full implementation of the guiding principles of the 20th Party Congress,and it is of great significance to do a good job in our economic work.While our economy is currently showing a steady upward trend,we still face many challenges

17、 and uncertainties.To achieve our development goals for the year,we need to redouble our efforts.Premier Li Qiang Two Sessions 2023 3 zero-COVID policy.As a result,the government prioritizes economic recovery as a means of stabilizing the country.The Report underscores the governments commitment to

18、supporting businesses through increased infrastructure investment,incentive policies,and initiatives to boost domestic consumption.Regionally,local governments are aiming for higher growth rates,with an average target of 5.9%.This indicates that businesses can anticipate substantial support from var

19、ious government levels,further fostering economic stability and growth.Expanding domestic demand as top priority The Report presents a realistic assessment of Chinas internal and external environment,pinpointing potential risks and challenges.While it acknowledges external uncertainties such as high

20、 global inflation,a faltering global economy and international trade,and escalating attempts to suppress and contain China,the Report emphasizes domestic issues.Specifically,it highlights that insufficient demand remains a pronounced problem and identifies expanding domestic demand as the government

21、s top priority for the year.To raise the income of urban and rural residents,the Report recommends enhancing the effectiveness and intensity of proactive fiscal policies.The government should refine and extend preferential tax and fee policies,implementing targeted tax and fee cuts,rebates,and defer

22、rals as needed.During the Two Sessions,a number of government officials and representatives proposed concrete measures to stimulate consumption,including stabilizing bulk consumption,particularly for new energy vehicles,and promoting the distribution of smart home appliances and green building mater

23、ials in rural areas.These measures should help bolster demand and support Chinas economic recovery.Continuing the transition to green development The Report emphasizes the urgency of pollution prevention and control,as well as enhancing urban-rural environmental infrastructure and protecting vital e

24、cosystems.It advocates for increased investment in clean coal research and development(R&D)and accelerated progress in developing a new energy system.To foster sustainable development,the Report supports policies that promote green development,a circular economy,resource efficiency,and carbon reduct

25、ion.It highlights the importance of maintaining clear skies,clean waters,and pristine lands.In alignment with the 20th Party Congress,the Report highlights a transition in environmental protection from reactive pollution control to proactive green development promotion.This shift represents Chinas c

26、ommitment to establishing regularized pollution prevention and management.The Report presents a series of targeted measures,including the creation of a new energy system,enhancement of green development policies,support for a circular economy,and the advancement of resource conservation and utilizat

27、ion.These measures aim to make the Reports sustainable development goals more attainable.4 Emphasizing the parallel pursuit of development and security in industrial policies Competition in high-end manufacturing is fierce worldwide.President Xi Jinping emphasized the importance of prioritizing the

28、real economy during the Two Sessions.China is focused on advancing new industrialization,developing major technical equipment,and promoting high-end,intelligent,and green manufacturing.In 2022,Chinas manufacturing industry contributed 27.7%of GDP,ranking first globally for 13 consecutive years.This

29、industry is crucial in stabilizing Chinas economy,serving as a ballast stone.Modernizing the industrial system The Report highlights the importance of modernizing the industrial system and enhancing self-reliance in science and technology by achieving breakthroughs in core technologies and focusing

30、on key industrial chains in manufacturing.It also underscores the need to accelerate the digitalization of traditional industries and small and medium-sized enterprises(SMEs),making them smarter,higher-end,and eco-friendly.The Report emphasizes the importance of accelerating R&D in cutting-edge tech

31、nologies and supporting the growth of the digital and platform economies.During the Two Sessions,various government officials discussed the transformation of traditional industries,noting that these industries account for over 80%of Chinas manufacturing sector.The government aims to promote high-end

32、,intelligent,and eco-friendly development to elevate these industries within the market.To achieve this goal,several detailed measures have been proposed,including initiating major R&D projects for advanced technology equipment,prioritizing intelligent manufacturing in key industries,and establishin

33、g a group of intelligent factories.Moreover,the government plans to implement large-scale projects to reduce energy consumption and carbon emissions,as well as to improve resource utilization.Improving the resilience and security level of the industrial and supply chain In an article published short

34、ly before the Two Sessions titled Major Issues Pertaining to the Countrys Current Economic Work,President Xi Jinping outlined several key tasks for building a modern industrial system,emphasizing the need to ensure the smooth operation of the national economic cycle,with a particular focus on key in

35、dustrial chains in the manufacturing sector.Additionally,he stressed the importance of identifying core technologies and weak links in components,consolidating high-quality resources to address key issues,and ensuring the independence,controllability,security,and reliability of the industrial system

36、.The article provided detailed insights and guidance on these matters,demonstrating the Chinese governments commitment to driving the countrys economic development and building a robust and sustainable industrial system.According to the Report,measures have been taken to enhance the resilience and s

37、ecurity of the industrial and supply chains.It calls for strengthening weak links in the industrial chain,particularly in the manufacturing sector.The manufacturing industry must always be a pillar of strength for China.The manufacturing industry is an indispensable sector to China at all times.Chin

38、a will strive to develop high-end manufacturing to realize all-around improvement and provide full support for its development.President Xi Jinping Two Sessions 2023 5 The Report emphasizes the consolidation of high-quality resources to achieve breakthroughs in core technologies,the implementation o

39、f industrial and supply chain connectivity projects,the acceleration of chain-leading enterprise development,and the upgrading of digital transformations within the supply chain.Digitizing the economy The Report suggests that China should focus on developing the digital economy,enhancing regular ove

40、rsight,and supporting the growth of the platform economy.As digitization is among the top priorities of Chinas industrial and innovation policies,the government aims to accelerate the digital transformation of traditional industries and SMEs,with policy support continuing to increase.A recent plan f

41、rom the Central Committee and State Council highlights the deep integration of digital technology with key industries such as agriculture,industry,finance,education,healthcare,transportation,and energy.Considering data as a critical factor in the digital economy,the Chinese government has been worki

42、ng to develop the data market.In December 2022,the Twenty Articles on Data policy was introduced,emphasizing the promotion of compliant and efficient use of data to empower the real economy.As part of this strategy,the establishment of the National Bureau of Data was confirmed during the Two Session

43、s,taking on the responsibilities of promoting the development of data-related fundamental institutions,coordinating the integration,sharing,development,and application of data resources,and driving the planning and construction of a Digital China,digital economy,and digital society.The establishment

44、 of the bureau is needed for addressing current challenges in the circulation and use of data,as well as accelerating the development of the data market.This represents a new opportunity for Chinas digital economy to flourish,propelling the country towards rapid scientific and technological developm

45、ent.Achieve greater self-reliance and strength in sci-tech The Report states that China has successfully executed an innovation-driven development strategy and upgraded its industrial structure over the past five years.By cultivating new growth drivers and fostering the development of the real econo

46、my through innovation,China has achieved numerous accomplishments,with sci-tech empowerment standing as a prominent symbol of this progress.In fact,sci-tech innovation has emerged as a crucial driving force for Chinas modernization.This is evident in the countrys substantial investment in research a

47、nd development,which reached a record 3.09 trillion yuan(USD$449 6 billion)in 2022,marking a 10.4%year-on-year increase.As a result of this investment,China has experienced a remarkable rise in the Global Innovation Index,climbing from 34th in 2012 to 11th in 2022.Despite this progress,China faces h

48、eightened technological competition and tension with the U.S.,reinforcing the need for further action to enhance self-reliance in sci-tech.This will lead to continued efforts to advance indigenous innovation and technology while reducing dependence on foreign technology.Promoting a“new national syst

49、em”The Report calls for the promotion of a new national system to develop and master key core technologies,achieving scientific and technological independence and self-sufficiency.The new national system focuses on several key directions and industries,including artificial intelligence,quantum infor

50、mation,integrated circuits,life and health sciences,brain science,biological breeding,aerospace technology,and deep sea and earth exploration.By prioritizing these areas,China aims to lead the way in cutting-edge technology,paving the way for further progress and innovation.Enhancing capacity buildi

51、ng in basic research The Report underscores the importance of prioritizing the construction of major technology innovation platforms and supporting top scientists in leading original and pioneering scientific and technological research.The objective is to overcome key technological challenges and ac

52、hieve self-reliance and self-control in essential areas and critical links.This echoes with President Xis recent speech before the Political Bureau,in which he emphasized the significance of strengthening basic research and highlighted the importance of deepening reforms to support basic research an

53、d attract high-quality researchers.Elevating enterprises as the principal actors in innovation Another important measure highlighted at the Two Sessions was to prioritize enterprises as the driving force for scientific and technological innovation.During an interview,the Minister of the Ministry of

54、Science and Technology(MOST)reiterated the commitment to further increase the support for enterprises to become the main players in scientific and technological innovation.This entails fostering an ecosystem that promotes fairness in terms of rights,opportunities,and regulations,thus providing a goo

55、d environment for enterprises to thrive as the leading force in scientific and technological innovation.Strengthen partys overall leadership in sci-tech This years institutional reform plan includes a significant change in the sci-tech area.The plan aims to establish the CPC Central Science and Tech

56、nology Commission to strengthen Party leadership,while the MOST will oversee the commissions daily work.The goal is to better coordinate sci-tech policies,mobilize innovation resources,and Speeding up efforts to achieve greater self-reliance and strength in science and technology is the path China m

57、ust take to advance high-quality development.To open up new areas and new arenas in development and foster new growth drivers and new strengths in face of fierce international competition,China should ultimately rely on scientific and technological innovation.President Xi Jinping Two Sessions 2023 7

58、 improve the performance of research institutes,universities,and high-tech enterprises.This will address challenges in key technologies,such as the semiconductor industry,and ultimately promote self-reliance in science and technology.Creating a pro-business environment As high-quality development be

59、comes the main theme of Chinas economic growth this year,China is committed to fostering confidence and stability among domestic and foreign investors while cultivating a more business-friendly environment to stimulate economic growth.The newly appointed Premier Li Qiang has a rich background in eco

60、nomic management,having previously served in economically developed regions of China such as Zhejiang,Jiangsu,and Shanghai.He is highly respected for his practical and pro-business approach,which has earned him the reputation of being a friend of entrepreneurs.During the press conference following t

61、he Two Sessions,he demonstrated a new image of a Premier who is well-informed about grassroots issues and is pragmatic,having been on the front line of Chinas reform and opening up.Revitalizing the confidence of private enterprises The Report emphasizes the importance of protecting the property righ

62、ts and interests of private enterprises and entrepreneurs in accordance with the law,while encouraging and supporting their growth.It also highlights the need to support the development of micro,small and medium-sized enterprises(MSMEs)and self-employed individuals and foster a transparent,positive

63、relationship between government and businesses.In the coming year,China will most likely implement more tangible and specific measures to support private enterprise.The government communicated that it aims to transform its functions,establish a mutually beneficial relationship with the private secto

64、r,maintain market fairness,and provide increased support in areas such as capital,land,and other factors.Provinces with robust private economies,such as Jiangsu and Zhejiang,have emphasized that government departments should adopt a service provider mentality to better serve private enterprises.Prem

65、ier Li Qiang reaffirmed these commitments,asserting that the development environment for private enterprises will continue to improve,and their growth opportunities will expand.He also pledged that his government will create a market-oriented rule of law and internationalized business environment,fu

66、rther strengthening expectations for progress.Intensifying efforts to attract and utilize foreign investment The Report identifies attracting and utilizing foreign investment as a key task for the Chinese government.Alongside ensuring the legitimate rights and interests of foreign investors,the Chin

67、ese government said it is committed to creating a more favorable business environment for foreign companies.In the past year,new policy measures were introduced to encourage global companies to establish research and development We always believe that private enterprises and entrepreneurs belong to

68、our own family,and we shall stand by them through thick and thin,provide support when they face challenges and guidance when they encounter confusion.President Xi Jinping Two Sessions 2023 8 centers in China,counteracting the negative impacts of outbound investment screening policies in other countr

69、ies.In recent years,China has made substantial progress in opening its economy to the world.Actively improving the foreign investment environment,the nationwide negative list for foreign investment access has been reduced to 31 items.Commerce Minister Wang Wentao emphasized the Ministrys ongoing eff

70、orts to further shrink this list and ease or eliminate restrictions.This will be achieved by focusing on pilot programs and leading initiatives,such as free trade pilot zones,the Hainan Free Trade Port,demonstration projects for expanding the service industry,and national-level economic development

71、zones.The Deputy Minister of the National Reform and Development Commission(NDRC)also noted that China is progressively opening up industries like telecommunications,the internet,education,culture,and medical care.By aligning with international high-standard economic and trade rules,China aims to pr

72、omote greater openness and elevated standards to support economic development.Preventing and defusing major economic and financial risks Effectively preventing and defusing major economic and financial risks ranks fifth among the key tasks of the Report,reflecting the implementation of the guideline

73、s of the 20th National Party Congress and the Central Economic Work Conference at the end of 2022.The Report emphasizes the need to effectively prevent and resolve major economic and financial risks,mainly including financial risks,real estate risks,and local government debt risks,and the risk preve

74、ntion orientation is very clear.Deepening financial system reform and improving financial regulation The Report proposes to deepen financial system reform and improve financial regulation,which was emphasized at the Second Plenary Session of the 20th CPC Central Committee and was also an important p

75、art of the deepening of Party and state institution reforms at the 20th Party Congress.This indicates that the Party Central Committee attaches great importance to preventing and resolving financial risks.Therefore,improving the financial system and further enhancing management efficiency will be on

76、e of the goals of this round of institutional reform,in order to more effectively prevent and resolve major economic and financial risks.Supervising financial activities with a central financial regulatory administration According to the institutional reform plan published during the Two Sessions,Ch

77、ina is reorganizing its financial regulatory system to establish a National Financial Regulatory Administration responsible for regulating the financial industry,excluding the securities sector.This new administration will have the authority to oversee financial regulation throughout the country and

78、 will be based on the former China Banking and Insurance Regulatory Commission(CSRC).The China Securities Regulatory Commission will also be strengthened and take over reviewing the issuance of bonds,including the local government financing vehicles(LGFVs).This aims to The crucial role of finance in

79、 economic development and the prevention of financial risks are both prominent issues at present.President Xi Jinping Two Sessions 2023 9 bring all financial activities under supervision and resolve long-term financial problems.The streamlined regulatory framework will enhance financial system stabi

80、lity and promote sustainable economic growth in China and globally.Foreign policies and Taiwan issue in a new era The Report highlights Chinas stated commitment to an independent foreign policy centered on peace and peaceful development,as well as fostering cooperation with other nations based on th

81、e Five Principles of Peaceful Coexistence.It underlines the importance of pursuing a mutually beneficial strategy of opening up,contributing to global development,and upholding the international order to safeguard world peace.Chinas government also expressed its readiness to collaborate with the int

82、ernational community in implementing the Global Development Initiative and the Global Security Initiative while promoting universal values.Qin Gang,former Chinese Ambassador to the U.S.,has made an extraordinary advancement by being promoted two levels within just three months moving from his previo

83、us role to his current position as State Councilor and Foreign Minister.His leadership style undoubtedly reflects,to a certain extent,the direction of Chinas diplomatic policy for the foreseeable future.China-U.S.relationship In one of his speeches during the Two Sessions,President Xi Jinping direct

84、ly mentioned the U.S.and alleged it has engaged in efforts to block and contain Chinas development.This uncommon bluntness may hint a broader shift in Beijings rhetoric,which was later reinforced by Chinas new foreign minister,Qin Gang.He said that the U.S.perception and views toward China are signi

85、ficantly distorted.He accused the U.S.of overreacting and employing excessive force in the balloon incident,which led to a diplomatic crisis.Qin asserted that the U.S.competition with China aims to contain and suppress China in all aspects,pushing bilateral ties into a zero-sum game.He urged the U.S

86、.to abandon its alleged Cold War mentality and to cooperate with China to advance the interests of both nations and the global community.During the Two Sessions closing,Premier Li Qiang addressed the press and dismissed the notion of decoupling with China,a notion that had gained popularity in the U

87、.S.He emphasized that China and the U.S.should continue to collaborate and work together,as both countries are capable of achieving significant progress through cooperation.China-Europe relationship Concerning Chinas relationship with Europe,Qin Gang stated that China-Europe engagement is an indepen

88、dent choice,with relations not targeted to,dependent on,or influenced by any third party.He The external environment for Chinas development has changed dramatically,with a significant increase in uncertain and unpredictable factors.In particular,western countries,led by the United States,have implem

89、ented comprehensive containment,blockade,and suppression measures against China,posing unprecedented severe challenges to our countrys development.President Xi Jinping Two Sessions 2023 10 emphasized that China views the European Union(EU)as a comprehensive strategic partner and supports European in

90、tegration,regardless of changing circumstances.Qin expressed Chinas hope to collaborate with Europe in overcoming disruptions and challenges,and to continue deepening bilateral ties.This aligns with the perspective on China-Europe relations expressed by Wang Yi,the current Director of the Office of

91、the Central Foreign Affairs Commission of the CPC,during his recent visit to Europe.He highlighted that China and the EU are partners rather than rivals,sharing more common ground than differences.Wang emphasized that the cornerstone of Chinas policy towards the EU is friendship,with a focus on fost

92、ering cooperation.On Taiwan:Take decisive action against“Taiwan independence”The Report emphasized the need for decisive action against Taiwan independence,while promoting peaceful development,cultural,and economic cooperation across the Taiwan Strait.Compared to the report of 2022,it included the g

93、oal of improving systems and policies that benefit Taiwanese citizens.Qin Gang also addressed Taiwan during his first press conference as Foreign Minister,emphasizing the countrys determination for reunification by displaying a copy of the nations constitution.Qin stated that resolving the Taiwan is

94、sue is a matter for the Chinese people alone,without foreign interference.He also warned that mishandling the issue could undermine China-US relations.11 Annex I:Government Organizational Chart Chairman Zhao Leji Vice President Han Zheng,69,member of the Standing Committee of the Political Bureau fr

95、om 2017-2022 Han was Shanghais Party Secretary for five years before being promoted to the Politburo Standing Committee in 2017 and executive Vice-premier the next year.He has substantial experience in handling foreign diplomats and investors.Standing Committee of NPC National Peoples Congress Xi Ji

96、nping,70,third term as Chinas President President Chairman Wang Huning Chinese Peoples Political Consultative Conference Premier Li Qiang,64 Li Qiang held a position as one of Xis most trusted confidants from 2004 to 2007 when Xi was the Party Secretary of Zhejiang.He successively became governor of

97、 Zhejiang,Party Secretary of Jiangsu and Shanghai,three of the most economically powerful provinces in China.Li Qiang is known as business-friendly and pragmatic.Craig Allen,president of the US-China Business Council,said Li sought to level the playing field for foreign businesses,pointing to the sp

98、eed with which US carmaker Tesla was able to get its Shanghai factory operational in 2019.Vice premiers Ding Xuexiang,61 Ding is Xis most trusted aide.He accompanies Xi to virtually all of his official engagements and is responsible for managing his agendas,briefings and meetings.He spent 14 years a

99、t the Shanghai Research Institute of Materials.In 2007,Ding became Secretary General of the party committee in Shanghai and worked under Xi from then.When Xi became President in 2012,Ding was transferred to Beijing as deputy head of the General Office and ran the Presidents office.He has no experien

100、ce governing a provincial level economy,but his experience suggests that he is a talented administrator with political savvy and an appreciation for technocratic expertise.He Lifeng,68 He ran the National Development and Reform Commission(NDRC)until this Two Sessions,and may be appointed as the Vice

101、 Premier in charge of economic,financial and industrial affairs,taking the place of Liu He.He majored in finance and gained a doctorate in economics in Xiamen University.No overseas education or working background.Before joining NRDC,he successively worked in Fujian and Tianjin.State Council 12 Zhan

102、g Guoqing,59 He studied electrical engineering at a university in Changchun and pursued a masters degree in international trade from the Nanjing University of Science and Technology.He got PhD in economics in 2004.Zhang worked for 20 years in defense corporations before turning to politics.During hi

103、s career in corporates,he worked in Norincos operations in the Middle East and served as president of this military company from 2008 to 2013 when he took on a political office for the first time.He used to be Governor of Chongqing and Tianjin,as well as Party Secretary of Liaoning.Liu Guozhong,61 L

104、iu attended the Nanjing Institute of Technology where he majored in artillery system fuse design and manufacturing and has a graduate degree from the Harbin Institute of Technology.He began his political career in Heilongjiang province in northeastern China,before moving to the All-China Federation

105、of Trade Unions and then transferring to Sichuan and Jilin.In 2017,he was appointed Deputy Party Secretary of Shaanxi,the home province of President Xi.Later,Liu became Governor and from 2020 to 2022 he served as provincial Party Secretary.State Councillors Li Shangfu,65 He also becomes the Defense

106、Minister.He had worked in Chinas satellite program and is under U.S.sanctions over the purchase of combat aircraft and equipment from Russias main arms exporter.Wang Xiaohong,66 He also holds the post of Public Security Minister,or police chief.He worked as a police chief in the city of Fuzhou when

107、Xi was party chief there in the early 1990s.Wu Zhenglong,59 He is Secretary-General of the State Council and was formerly Party Secretary of Jiangsu Province.Shen Yiqin,64 She becomes the highest-ranking woman in China.She was formerly Party Secretary of the southern Chinese province of Guizhou.Qin

108、Gang,57 He is also the Foreign Minister.The former Ambassador to the U.S.and had worked closely with Xi when he was chief protocol officer between 2014 and 2018.Ministers The only cabinet-level personnel changes were at the NDRC and the Defense Ministry.The following cabinet ministers held on to the

109、ir positions:Qingang,57,Minister of Foreign Affairs(MOFA)Li Shangfu,65,Minister of Defense Zheng Shanjie,62,takes over from He Lifeng as head of the NDRC.Zheng has spent most of his career in his native Fujian province where he had served as director of Fujian Provincial Development and Reform Commi

110、ssion and Vice Governor of Fujian province.Huai Jinpeng,61,Minister of Education(MOE)Wang Zhigang,66,Minister of Science and Technology(MOST)Takeaways:Many of the members of the State Council have longstanding ties to President Xi.The trust and closeness with the top leader may provide them with mor

111、e flexibility to implement experimental policies,and make their own governance decisions.Compared to previous State Councils,this slate of leaders has a strong background in the aerospace and defense industry and management experience in giant SOEs.In addition,the State Council also consists of appo

112、intees with both high-level and substantial experience with the economy,including promoting private sector development and attracting FDIs.Li,Ding,He,Zhang,and Wu all were provincial leaders in Zhejiang,Jiangsu,Fujian,Tianjin,or Shanghai,coastal economic powerhouses and some of the most private-sect

113、or-dominated provinces in the country.13 Jin Zhuanglong,59,Minister of Industry and Information technology(MIIT)Pan Yue,63,Head of the National Ethnic Affairs Commission Wang Xiaohong,66,Minister of Public Security(MPS)Chen Yixin,64,Minister of State Security Tang Dengjie,59,Minister of Civil Affair

114、s He Rong,61,Minister of Justice Liu Kun,67,Minister of Finance(MOF)Wang Xiaoping,59,Minister of Human Resources and Social Security Wang Guanghua,60,Minister of Natural Resources Huang Runqiu,60,Minister of Ecology and Environment Ni Hong,61,Minister of Housing and Urban-rural Development Li Xiaope

115、ng,64,Minister of Transport(MOT)Li Guoying,60,Minister of Water Resources Tang Renjian,61,Minister of Agriculture and Rural Affairs Wang Wentao,59,Minister of Commerce(MOFCOM)Hu Heping,61,Minister of Culture and Tourism Ma Xiaowei,64,Head of the National Health Commission Pei Jinjia,60,Minister of V

116、eterans Affairs Wang Xiangxi,61,Minister of Emergency Management Yi Gang,65,Governor of the Peoples Bank of China.Hou Kai,61,Auditor-general of the National Audit Office State Central Military Commission Chairman Xi Jinping National Supervisory Commission Director of the National Supervisory Commiss

117、ion,Liu Jinguo,68 He also serves Secretary of the Secretariat of the Communist Party of China.Since 2014 he has served as Deputy Secretary of the Central Commission for Discipline Inspection.Previously he held various senior posts at the Ministry of Public Security.Supreme Peoples Procuratorate Pros

118、ecutor-General of the Supreme Peoples Procuratorate,Ying Yong,66 He was formerly the Party Secretary of Hubei from February 2020 to March 2022.He came to prominence beginning in 2003 in Zhejiang province and served as the president of the provincial High Court.He became the mayor of Shanghai in Janu

119、ary 2017.On February 12,2020,Ying was appointed Party Secretary of Hubei.Chief Justice and President of the Supreme Peoples Court,Zhang Jun,67 Between 2018 and 2023,he served as the Procurator-General of the Supreme Peoples Procuratorate,and the Minister of Justice between 2017-2018.Supreme Peoples

120、Court 14 Annex II:Institutional Reform of State Council General Office of the State Council A national data bureau will be established:Task:Responsible for advancing the development of data-related fundamental institutions,coordinating the integration,sharing,development and application of data reso

121、urces,and pushing forward the planning and building of a Digital China,the digital economy and a digital society,among others.Certain functions of the Office of the Central Cyberspace Affairs Commission and the NDRC,including the construction of smart city and digital infrastructure,will be transfer

122、red to the new bureau.Constituent Departments of the State Council Unchanged:Ministry of Foreign Affairs,Ministry of National Defense,Ministry of Education,National Ethnic Affairs Commission,Ministry of Public Security,Ministry of State Security,Ministry of Justice,Ministry of Finance,Ministry of Na

123、tural Resources,Ministry of Housing and Urban-Rural Development,Ministry of Transport,Ministry of Water Resources,Ministry of Commerce,Ministry of Culture and Tourism,Ministry of Veterans Affairs,Ministry of Emergency Management,National Audit Office New task of NRDC:Certain functions of MOST,includ

124、ing making policies on Science and Technology to promote social development,will be transferred to NRDC.Reorganized Some functions transferred to other departments.Focus on core technologies,to strengthen its work in areas such as research and national laboratory construction.New tasks(transferred f

125、rom MOST)：Organize high-tech development and industrialization planning and policy.Guide the construction of national innovative demonstration zones,national high-tech industrial development zones and other science and technology parks.Guide the development of science and technology service,market a

126、nd intermediary organizations.National Development and Reform Commission(NRDC)Ministry of Science and Technology(MOST)Ministry of Industry and Information Technology (MIIT)15 New tasks：Will be responsible for developing and coordinating the implementation of policies and measures to deal with the ag

127、ing of the population,which used to be the National Health Committees responsibility.Will undertake the specific work of the National Committee on Aging.Ministry of Civil Affairs New task(transferred from MOST):Will be responsible for introducing foreign talents to China.Will integrate the bureau of

128、 foreign experts.Ministry of Human Resources and Social Security New task(transferred from MOST):Will be partly responsible for planning on the promotion of science for social development.Ministry of Ecology and Environment Ministry of Agriculture and Rural Affairs New tasks：Transferred from MOST:Or

129、ganize the formulation of science and technology related planning and policy for agricultural and rural development to guide the progress in rural areas.Transferred from National Rural Revitalization Administration:Organize East-West collaboration,counterpart support and social assistance;research a

130、nd propose plans for the allocation of central financial funds related to the promotion of rural revitalization,guide and supervise the use of funds;promote the development of rural assistance industries,social programs and public services in rural areas,etc.New bureau：National Rural Revitalization

131、Administration will be under the Ministry of Agriculture and Rural Affairs.China Rural Technology Development Center,former bureau under MOST,will be transferred to the Ministry.New task(transferred from MOST):Will be partly responsible for planning on the promotion of science for social development

132、.National Health Commission New bureau：China National Center for Biotechnology Development,former bureau under MOST,will be transferred to the Committee.16 Peoples Bank of China(PBOC)Branch banks on the level of great region,capital city of provinces and county will be rescinded.Sales management dep

133、artment directly under head office will be rescinded.Instead,branch banks on the level of province will be founded in 31 provinces,autonomous regions and municipalities directly under the central government.PBOC personnel will be included in countrys civil servant system.State Administration of Fore

134、ign Exchange Personnel will be included in countrys civil servant system.Branch banks on the level of municipality Take the tasks of the rescinded county branches.Take responsibilities for the work of the areas with large volume of foreign business.Special Organization directly under the State Counc

135、il Unchanged:State-owned Assets Supervision and Administration Commission of the State Council(SASAC)Organizations directly under the State Council Unchanged:General Administration of Customs,State Administration of Taxation,State Administration for Market Regulation,National Radio and Television Ad

136、ministration,General Administration of Sport,National Bureau of Statistics,China International Development Cooperation Agency,National Healthcare Security Administration,Counsellors Office of the State Council,National Government Offices Administration Directly under the State Council,the proposed a

137、dministration will be in charge of regulating the financial industry except the securities sector.It will be established on the basis of the China Banking and Insurance Regulatory Commission,which will not be retained.Tasks:Regular supervision on financial holding companies and other financial group

138、s,Protection for financial consumers(formerly under POBC)Protection for investors(formerly under China Securities Regulatory Commission)Personnel will be included in countrys civil servant system.New set up:State Administration of Financial Supervision 17 The China Securities Regulatory Commission w

139、ill become a government agency,rather than a public institution,directly under the State Council.Strengthen the capital market supervision responsibilities.Responsible for corporate bond issuance review,work transferred from NRDC.Personnel will be included in countrys civil servant system.China Secu

140、rities Regulatory Commission National Public Complaints and Proposals Administration will become an institution directly under the State Council from one under the General Office of the State Council China National Intellectual Property Administration currently administered by the State Administrati

141、on for Market Regulation,will be elevated into an institution directly under the State Council Administrative Offices of the State Council Unchanged:Hong Kong and Macau Affairs Office of the State Council,State Council Research Office Public Institutions directly under the State Council Unchanged:Xi

142、nhua News Agency,Chinese Academy of Sciences,Chinese Academy of Engineering,Chinese Academy of Social Sciences,Development Research Center of the State Council,China Media Group,China Meteorological Administration China Banking and Insurance Regulatory Commission：rescinded to form State Administration of Financial Supervision China Securities Regulatory Commission：becoming a government agency directly under the State Council 18 Contact For further detail about BCWs offerings,please contact:Thomas Howard:thomas.howardbcw- Qingyi Xie:qingyi.xiebcw-