Reform Party and State Institutions to Modernize China’s Governance

Reform Party and State Institutions to Modernize China’s Governance*

February 28, 2023

Deeper reform of Party and state institutions is an important measure for applying the guiding principles of the 20th CPC National Congress held in 2022. It is also a central plan for modernizing China’s governance system and capacity. Under this reform, the Party’s leadership over socialist modernization will become more rational in institutional structure, better optimized in division of functions, stronger in systems and mechanisms, and more efficient in operations and management. Reform of Party and state institutions is a complex and systematic project. It cannot be completed at the stroke of a pen, and it is not a one-off effort. To advance the undertakings of the Party and the country, we should continue to adjust and optimize the functions of Party and state institutions in line with our new missions, new strategies, and new requirements.

Building on the systematic and holistic functional restructuring of Party and state institutions since the Third Plenary Session of the 19th CPC Central Committee in 2018, this round of reform has been conceived against the backdrop of the major strategic plans defined by the 20th CPC National Congress for the Party and the country over the next five years and beyond. We must stay committed to the general principle of pursuing progress while ensuring stability, take a holistic approach to the Five-sphere Integrated Plan, ensure coordinated implementation of the Four-pronged Comprehensive Strategy, foster a new development dynamic, and pursue high-quality development. Taking a problem-oriented approach, we should coordinate institutional reform of the CPC Central Committee, the National People’s Congress (NPC), the State Council, and the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), and at central and local levels. We should fully leverage favorable conditions on all fronts, take account of all risks and challenges, and firmly advance adjustments to institutional responsibilities in key areas.

Since the 18th CPC National Congress in 2012, a significant objective of deeper reform of Party and state institutions has been to uphold and strengthen the Party’s overall leadership in all areas throughout the process of fulfilling institutional responsibilities. In this round of reform, we will set up new entities under the CPC Central Committee, including new decision-making, deliberative, and coordinating institutions, new functional departments and working bodies, and a new work committee in the financial sector. In doing so, we aim to leverage our strengths, address our weaknesses, and strengthen the Central Committee’s centralized, unified leadership over major initiatives. These new entities are to take the lead in upholding the Central Committee’s centralized, unified leadership, and implementing the Party’s guidelines and policies. They must stay focused on their responsibilities and strengthen coordination to better fulfill their roles.

Rational designs and arrangements for institutional structures and division of functions have been made in key areas such as financial supervision, science and technology management, social management, data management, intellectual property rights management, Hong Kong and Macao affairs, work related to agriculture, rural areas and rural people, and eldercare. These adjustments are solutions put forward after an analysis of the deep-seated problems and challenges we face. Moving forward, the key is for these institutions to align with the responsibilities assigned by the CPC Central Committee, transform their functions, approaches, and work practices, and efficiently perform their duties.

All provincial authorities and central departments should think and act in the context of the overall situation, and ensure that the institutional reform plan is implemented fully and faithfully, without compromise, distortion or deviation. Particular attention should be paid to formulating and enforcing the departmental regulations that define their functions, internal bodies, and staffing. As Party rules and the basis for departmental duties, these regulations are under the authority of the CPC Central Committee. Once these are approved by the CPC Central Committee, all departments should perform their duties and conduct their work accordingly. Their ability to fulfill their functions and the quality of their performance will be essential criteria in evaluating the success of institutional reform.

Effective organization and implementation is of vital importance to institutional reform. We must continue to apply the valuable experience we have gained, such as upholding the Party’s overall leadership over institutional reform, establishing new institutions before dissolving old ones, optimizing and coordinating the functions of institutions for greater efficiency, conducting institutional reform both at the central and local levels under an overall plan, ensuring unity between reform and the rule of law, and carrying out ideological and political work throughout the entire process of reform. We must focus on critical issues and ensure that our reform is conducted thoroughly and meticulously in an organized, systematic and disciplined manner.

First, strengthening coordination. Under the leadership of the Standing Committee of the Political Bureau of the CPC Central Committee, the Central Commission for Further Reform is to oversee institutional reform and establish a mechanism to strengthen coordination. The CPC Central Committee, the NPC, the State Council, and the CPPCC National Committee are responsible for implementing institutional reform within their respective remits, while local institutional reform will fall under the unified leadership of provincial-level Party committees. Leaders of the CPC Central Committee and the State Council in charge of specific sectors bear the primary responsibility for institutional reform in their respective domains. They must take the lead in implementing the decisions and plans of the CPC Central Committee, work with the leadership teams of reform-related departments to refine action programs, and focus on aspects critical to success such as mobilization and arrangements, open communication, reassignment and reorganization, and functional adjustments. Party and state agencies such as the General Office of the CPC Central Committee, the Organization Department of the CPC Central Committee, the State Commission Office of Public Sector Reform, and the General Office of the State Council must also coordinate their efforts in institutional reform based on their respective responsibilities.

Second, proceeding in a smooth and orderly manner. This round of reform involves many Party and state institutions and addresses deep-seated issues. It therefore requires careful planning before action. Leadership teams of newly established entities should be in place in good time. They must familiarize themselves promptly with their responsibilities and tasks. Following the sequence of reassignment and then establishment of the departmental regulations that define the functions, internal bodies, and staffing of the new entities, they should quickly set up the internal bodies, staff them properly, and arrange for centralized operations to ensure smooth transition, orderly reassignment, and seamless coordination. Concerning complex reform tasks with a wide-ranging impact, particular efforts will be required to study and draft specialized plans based on the CPC Central Committee’s top-level design, refine relevant policy measures, obtain approval through the appropriate channels, and implement the plans and measures accordingly. Planning and implementation of institutional reform at central and local levels should be closely coordinated and progressed in an orderly manner. Reform in central institutions is expected to be complete by the end of 2023, and reform in local institutions by the end of 2024.

Third, handling personnel affairs properly. We must encourage Party members and officials to maintain their political commitment, keep in mind the general picture, and observe rules. To ensure unity in thought, continuity in work, cohesive teams, and sustained motivation, we should guide them to take a positive approach to changes in personal interests and career paths, actively support institutional reform, and conscientiously follow arrangements made by Party organizations.

Fourth, enforcing strict discipline. Departments undergoing institutional changes or functional adjustments must subordinate themselves to overall interests of the country and ensure timely alignment of functions, internal bodies, and staffing as required. Laxity and procrastination are unacceptable, even more so implementation that is irregular or to departmental advantage. Interference by higher authorities in the configuration and staffing of subordinate institutions is strictly prohibited, as is last-minute promotion of officials before an institutional change. Financial discipline must be rigorously enforced, and the loss of state assets must be prevented. We should enforce strict discipline, supervision and accountability, stringently investigate and deal with violations of regulations or discipline in institutional reform, and hold those involved accountable.

Fifth, adopting a law-based approach. Institutional reform must be progressed under the rule of law. Where laws are to be enacted, revised or abolished, departments bearing the principal responsibility must cooperate with legislative bodies, while the latter must coordinate the enactment, revision, abolition and interpretation of such laws.

In addition to the Plan for Reform of Party and State Institutions deliberated at this plenary session, the Central Committee has also discussed and planned adjustments to optimize its own deliberative and coordinating institutions and those of the State Council. They must be implemented in a unified and coordinated manner.

* Part of the speech at the second full assembly of the Second Plenary Session of the 20th CPC Central Committee.

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