- David Gitter, Julia Bowie, Brock Erdahl
Weekly Report 1|21 3.10.2018-3.16.2018 (Two Sessions II)
EXECUTIVE SUMMARY
Xi Jinping was elected for a second term as China’s president. Wang Qishan was elected China’s vice president.
A large scale restructuring of the State Council centered around strengthening the CCP’s overall leadership of the country and improving efficiency by reducing redundancy.
The appointment of Central Commission for Discipline Inspection Deputy Secretary Yang Xiaodu as leader of the new National Supervision Commission strengthens the CCP’s disciplinary control over the entire Chinese government. Yang’s status as a trusted protege of Xi Jinping and a former CCDI deputy to Wang Qishan ensures Xi’s control over this new powerful body.
TWO SESSIONS
NPC Meeting:
Zhang Dejiang: Efforts to Strengthen Key Legislation Perfect the Legal System of Socialism with Chinese Characteristics with the Constitution as the Core
3.11 National People’s Congress (NPC) Standing Committee Chairman Zhang Dejiang (张德江) addressed the 13th NPC with a work report on key achievements of the NPC Standing Committee over the past five years. Specifically, he discussed how the NPC strengthened legislation in key areas to perfect the legal system of socialism with Chinese characteristics with the constitution as the core. First, the Standing Committee formed draft constitutional amendments intended to provide strong constitutional guarantees for the development of socialism with Chinese characteristics. Second, it made efforts to guarantee the implementation of the constitution by establishing a National Constitution Day to strengthen propaganda and education about the constitution and promote a “constitutional spirit,” as well as establishing a constitutional oath system in which government officials pledge loyalty to the constitution. Third, it accelerated the development of national security law by passing of a number of laws including the Military Facilities Protection Law and the Nuclear Safety Law. Fourth, it promoted the compilation of a civil code. Fifth, it strengthened legislation governing the socialist market economy. Finally, it passed laws which promote socialist core values, provide effective legal protections to promote people’s livelihoods, and firmly safeguard the constitutional order of special administrative regions.
Li Jianguo: The Main Points of the Nine-Chapter Supervision Law Draft
3.13 NPC Standing Committee Vice Chairman Li Jianguo (李建国) explained the important content points of the Supervision Law draft during the 13th NPC. He said that the draft contains 9 chapters and 69 articles, covering regulations on the duty, scope of power, procedures, and legal responsibility of the supervisory institutions and on international anti-corruption cooperation. Li pointed out that the draft clarifies the guiding thought, leadership system, and principles for supervisory work. It also dictates that the members of the National Supervision Commission will be selected by the NPC and that the reform of the national supervisory system will allow supervision over all personnel who exercise public power. Limitations on power and supervisory procedure are also listed in the draft.
Wang Yong Explains Plan for State Council Institutional Reform, Reforms Passed on 18 March
3.14, 3.17 State Councilor Wang Yong (王勇) explained the plan for deepening reform of Party and state institutions to the 13th NPC on 14 March, saying that the plan made comprehensive arrangements for reform of Party, state, military, and mass organizations and that deepening the reform of the State Council is a key task.
The proposed reforms include:
Replacing the Ministry of Land and Resources (国土资源部), State Oceanic Administration (国家海洋局), and Administration of Surveying, Mapping and Geoinformation (国家测绘地理信息局) with the Ministry of Natural Resources (自然资源部), which will be in charge of the development and the usage of natural resources
Replacing the Ministry of Environmental Protection (环境保护部) with the Ministry of Ecological Environment (生态环境部), which will supervise and manage pollution prevention and nuclear security
Replacing the Ministry of Agriculture (农业部) with the Ministry of Agriculture and Rural Affairs (农业农村部) to study and implement work strategies for the “three rural issues” and allocating the former’s work of inspecting and managing fishing boats to the Ministry of Transport (交通运输部)
Replacing the Ministry of Culture (文化部) and National Tourism Administration (国家旅游局) with the Ministry of Culture and Tourism (文化和旅游部) to combine the work of developing the cultural and tourist industries and reinforce cultural exchange
Disbanding the National Health and Family Planning Commission (国家卫生和计划生育委员会) and establishing the National Health Commission (国家卫生健康委员会), which will coordinate the deepening of reform in the medicine and healthcare system and conduct the daily work of the China National Working Commission on Ageing (全国老龄工作委员会)
Establishing the Ministry of Veterans Affairs (退役军人事务部)
Disbanding the State Administration of Work Safety (国家安全生产监督管理总局) and establishing the Ministry of Emergency Management (应急管理部)
Reconstructing the Ministry of Science and Technology (科学技术部) to combine its work with the State Administration of Foreign Experts Affairs (国家外国专家局)
Reconstructing the Ministry of Justice (司法部) and disbanding the State Council Legislative Affairs Office (国务院法制办公室)
Merging the Three Gorges Project Construction Committee (三峡工程建设委员会), South-to-North Water Diversion Project Commission (南水北调工程建设委员会) and their offices into the Ministry of Water Resources (水利部)
Improving the work of the National Audit Office (审计署) through empowering it with inspection and supervisory power over projects, the central budget, and SOEs of the National Development and Reform Commission (国家发展和改革委员会), Ministry of Finance (财政部), State-owned Assets Supervision and Administration Commission (国有资产监督管理委员会) and board of supervisors of all key large state-owned enterprises (国有重点大型企业监事会)
Incorporating the work of the Ministry of Supervision (监察部) and National Bureau of Corruption Prevention (国家预防腐败局) into the National Supervision Commission according to the constitutional amendments.
Other adjustments include establishing or reconstructing the state market regulatory administration, state drug administration, state medical insurance administration, state grain and reserves administration, state immigration administration, state forestry and grassland administration, China Banking and Insurance Regulatory Commission (中国银行保险监督管理委员会), and International Development Cooperation Agency (国家国际发展合作署). According to Xinhua, the latter will coordinate but not take over the duties of the Ministry of Commerce’s foreign assistance programs and the Ministry of Foreign Affairs’ foreign aid programs, and will reaffirm China’s commitment towards international development and South-South Cooperation. After the reform, the number of ministerial and sub-ministerial level institutions will be reduced by 8 and 7 respectively, making the structure of the State Council more efficient and better suited to current conditions. The State Administration of Press, Publication, Radio, Film and Television is among the institutions to be eliminated and a State Radio, Television Administration will be formed.
The reforms were passed on 17 March and were praised as fulfilling the people’s wish for a service oriented government.
The 13th National People's Congress Establishes 10 Special Committees
3.14 The NPC session approved the establishment of 10 special committees: the Ethnic Affairs Committee (民族委员会,) Constitution and Law Committee (宪法和法律委员会,) Supervision and Judicial Affairs Committee (监察和司法委员会,) Financial and Economic Affairs Committee (财政经济委员会,) Education, Science, Culture, and Public Health Committee (教育科学文化卫生委员会,) Foreign Affairs Committee (外事委员会,) Overseas Chinese Afrairs Committee (华侨委员会,) Environment Protection and Resources Conservation Committee (环境与资源保护委员会), Agriculture and Rural Affairs Committee (农业与农村委员会,) and the Socialist Development Committee (社会建设委员会).
Xi Jinping Unanimously Elected President, Wang Qishan Elected Vice President, Yang Xiaodu Elected Director of the National Supervision Commission
3.17-18 Xinhua heralded Xi Jinping’s expected reelection by the NPC on 17 March to the Chinese presidency for a second term. Opening with the phrase, “Elected by Unanimous Vote! Standing High in the People’s Favor!” (全票当选! 众望所归!), Xinhua announced that in accordance with the wishes of more than 1.3 billion Chinese, Xi Jinping was reelected China’s president and the chairman of the Central Military Commission. The choice was said to be one decided by history, the people’s faith, and the great trust of the era. Xi then took his public oath to the PRC Constitution and swore to struggle to build a prosperous, strong, democratic, culturally advanced, harmonious, and beautiful modernizing socialist powerful country.
Li Keqiang was reelected to the post of Premier, Wang Qishan was elected to the post of Vice President, and Central Commission for Discipline Inspection (CCDI) Deputy Secretary Yang Xiaodu (杨晓渡) was elected director of the National Supervision Commission.
CPPCC Meeting:
Wang Yang Elected Chairman of the 13th CPPCC National Committee
3.14 Politburo Standing Committee Member Wang Yang (汪洋) was elected Chairman of the National Committee of the 13th Chinese People’s Political Consultative Conference (CPPCC), the nation’s top political advisory body. At the same meeting, Xia Baolong (夏宝龙) was elected Secretary General of the CPPCC National Committee, and 24 vice chairpersons of the National Committee, and 300 members of the CPPCC Standing Committee were elected. Xinhua reported that, of the newly-elected vice chairpersons, 11 are CCP members, 13 are non-Party members, 4 are ethnic minorities, and 2 are women. Of the new Standing Committee, 195 (65%) are non-Party members, 33 are ethnic minorities, and 39 are women.
Wang Yang Speech to the CPPCC National Committee
3.15 During the closing of the 13th National Committee of the CPPCC, Wang Yang delivered his first speech as CPPCC chairman. The speech emphasized the conference’s founding and demonstrated that the various political parties, social sectors, and ethnic groups of China had chosen the CCP as their leader, and the progress over the last 70 years is evidence that this choice was correct. Wang urged the CPPCC to consciously accept the CCP’s leadership and consciously defend Xi’s core position and the authority and unified leadership of the Central Committee. The speech also praised the recently adopted constitutional amendments as being consistent with these goals and for providing powerful constitutional safeguards for persevering with and developing socialism with Chinese characteristics for a new era. It concluded with a call for the Chinese people across all political parties, ethnic groups, social classes, and faiths, both at home and abroad, to form a vast patriotic united front devoted to national unification and rejuvenation. He also called for the CPPCC to more closely unite behind Xi’s core status and work hard to realize the creation of a moderately prosperous society and realize the great victory of socialism with Chinese characteristics for a new era.
Commentary:
“Zhong Jiyan:” Follow the Constitution as a Fundamental, Carry Out the Sacred Duty of National Supervision
3.14 A commentary under the byline “Zhong Jiyan” (钟纪言) applauded recent amendments to the constitution that strengthen government supervision. It noted that there are 21 amendments to the constitution, 11 of which are related to reforming the country’s supervision system, including those related to the new National Supervision Commission which has been added to Chapter 3, “National Institutions” (国家机构). The commentary states that the addition has a solid theoretical, political and legal basis, and cites Xi Jinping as saying reforms must be based in law so that comprehensive reform and rule of law can progress together. It writes that the CCP Central Committee with Xi Jinping at its core is actively drawing wisdom from history, combining advanced theory with “crossing the river by feeling the stones.” The Commission and its local equivalents, which were established at all provincial, municipal and county government levels by the end of February 2018, reflect improved organizational systems that will turn the Party’s words into the national will through legal procedures. The commentary emphasized the amendment stipulating, “The PRC National Supervision Commission is the highest supervisory organ.” The Commission will coordinate with the Party’s disciplinary inspection organs working out of the same offices (合署办公), and will directly supervise the Party and state as well as all public officials.
Ding Xuexiang, Liu He and Yang Xiaodu: Deepening Party and State Institution Reform is a Requirement for Modernizing China’s System of Governance
People’s Daily
3.12-14 Three CCP Politburo members published articles in People’s Daily indicating their support for the “CCP Central Committee Decision on deepening structural reforms of Party and state institutions” (中共中央关于深化党和国家机构改革的决定), after Wang Yong introduced plans for institutional reform at the NPC meeting (see above).
Politburo Member Ding Xuexiang (丁薛祥) wrote in his 12 March article that it is a move in the right direction to modernize China’s system of governance and governance capability. Realizing both require improving the socialist market economic system, implementing people-centric development thinking, and reinforcing the Party’s comprehensive leadership. These all require deepened reform of Party and state institutions. He said that the Central Committee with Xi Jinping at its core has been reinforcing the Party’s leadership in all aspects and critical progress has been made in defending the centralized authority and leadership of the Party. The reforms will allow the system to adjust and scientifically defines the responsibility and power of each organ.
Politburo Member and National Development and Reform Commission (NDRC) Deputy Director Liu He (刘鹤) published a 13 March article stating that reform is necessary for realizing the two centenary goals (“两个一百年”奋斗目标) and building a modernized socialist country. He also emphasized that reinforcing the Party’s comprehensive leadership is the core task of the reforms. Liu wrote that the Party’s leadership on work portfolios, including deepening reform, rule of law, economics, rural issues, disciplinary supervision, and united front work, should be strengthened and improved, and Party and state institutions with similar functions should work closely together.
Politburo member, Deputy Secretary of the Central Commission for Discipline Inspection (CCDI), and Minister of Supervision Yang Xiaodu (杨晓渡) penned a 14 March article in which he called the move a “major strategic decision” of “far reaching significance for winning the struggle to achieve a moderately prosperous society and a new era of socialism with Chinese characteristics.” First, he said it reveals that the Party has a profound understanding of the importance of improving the function of Party and state institutions for upholding and strengthening the Party’s overall leadership, advancing the modernization of the national governance system and governance capabilities, improving the system of socialism with Chinese characteristics, and developing people-centric thinking. Second, he said that the decision focuses on creating a closely linked and coordinated functional system of Party and state institutions. According to Yang “China’s national governance system is an institutional system that manages the country under the leadership of the Party” and “the ability to govern the country is the ability to use state systems to manage all aspects of society.”
Zhong Sheng: “Confidence” is the Key Term to Understand China’s Future
3.12 The commentary pen name “Zhong Sheng” (钟声), which stands for “Voice of China” and authoritatively transmits the official positions of People’s Daily on matters of international affairs, compared China’s Two Sessions with the current political situation in the western political realm. The commentary argued that China’s Two Sessions showed a vigorous democratic atmosphere through discussing topics such as economic development, innovation buildup, and environmental protection. It used the recent Italian election and the gun control, immigration, and healthcare issues in the United States as examples to show how, compared to the West, Chinese people were able to reach consensus and improve policies. China’s confidence is now growing because of the sense of gain that the country brought to its people through various developmental breakthroughs. The commentary argued that democracy is to reflect public opinion and pursue public interests. The dilemmas that Western democracies are now facing are because of the design of its system. In China, political development is based on meeting people’s demands; China’s unique system also helps ensure the consistency between its goals and its actions.
PD Editorial: Provide Strong Constitutional Guarantee for the Rejuvenation of the People
3.12 People’s Daily published a front page editorial supporting the constitutional amendments passed by the 13th National People’s Congress. The editorial said that socialism with Chinese characteristics has entered a new era and that the constitution must improve along with the development of socialism with Chinese characteristics led by the Party. The amendments embodied the new achievements, experiences, and requirements of the work of the Party and the country. Xi Jinping pointed out that defending the authority and the dignity of the constitution is to defend the authority and dignity of the common will of the Party and the people. The editorial urged the amendments be used as an opportunity to prioritize the work of implementing the constitution while promoting comprehensively ruling according to the law in a new era. Guangming Daily and PLA Daily also published editorials supporting the amendments made.
Qiu Shi: Including Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era in the Constitution is an Important Ideological Guarantee for Realizing the China Dream
3.15 A commentary published in the Qiushi Journal under the pen name “Qiu Shi” (秋石), used by the Qiushi Editorial Board to convey the theoretical positions of the CCP Central Committee, emphasized that one of the characteristics of China’s constitution is that it lays out the fundamental missions and developmental path for the country and makes requirements for economic, political, cultural, social, and ecological construction. This is an important reason why the constitution can push the country’s development forward and create a better life for the people. Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era is Marxism for 21st-century China. Adding it to the constitution has given it the highest level of legal authority, the commentary stated.
SENIOR LEADERS
Zhong Shan: China Neither Wants nor Will Initiate a Trade War
3.11 At the NPC press conference, Minister of Commerce Zhong Shan (钟山) responded to reporters’ questions on a potential trade war with the United States, saying that there are no winners in a trade war and China will not initiate one, but China will meet any challenge to defend the interests of its people. He stated that given the high volume of trade and cross-national investment ($230 billion) the two economies are highly complementary. Zhong also asserted that, due to differences in accounting standards, US reports overestimate China’s trade surplus by about 20%. Additionally, he stated that according to US research institutes, were the US to relax export controls to China the trade deficit would be reduced by 35%. Zhong Shan expressed a willingness to continuing uninterrupted talks with US counterparts and hope of reaching cross-national consensus.
Xi Jinping Meets South Korea President’s Special Envoy Chung Eui-yong
3.12 Xi Jinping met with the South Korean President’s Special Envoy and National Security Director Chung Eui-yong in Beijing. Xi said that, as a neighbor of the Korean Peninsula, China has always supported the improvement of the relationship between the North and the South as well as dialogue between the US and North Korea. China is willing to work with the international community and combine China’s “dual-track approach” with other recommendations to promote political resolution on Korean Peninsula issues. China will adhere to the goal of a denuclearized Korean Peninsula and support direct communication between the US and North Korea.
Wang Yi: Adhere to a Peaceful Developmental Path and Promote the Establishment of a Community with a Shared Future for Mankind
3.14 Foreign Minister Wang Yi published an article in People’s Daily saying that the constitutional amendments passed embodied the common wish and will of the Party, the military, the country, and the people. He emphasized that, through adding “adhering to a path of peaceful development,” “adhering to a win-win and open strategy that is mutually beneficial, ” and “pushing for the establishment of a community with a shared future for mankind” to the constitution, the foreign policy part of the constitution was improved for the first time. He said that China will not go back to the old path of rising through invasion and expansion; it will discover a new path that allows the nation to develop and rejuvenate peacefully. China has established various forms of partnerships with more than a hundred countries, which provides a new model for how to handle country-to-country relationships. The BRI proposed by Xi has become the largest international cooperative platform and a global public good that is generally welcomed by the world. China stands against protectionism and will not engage in zero-sum games. He said that the constitutional amendments reflect China’s views on global governance and will guide China to make greater contributions to defending world peace and promoting joint development.
PROPAGANDA WORK
Zhong Sheng: The Positive Momentum on the Korean Peninsula Should Be Maintained
3.10 The commentary pen name “Zhong Sheng” (钟声) positively assessed recent developments related to the “Korean Peninsula problem” (半岛问题). The article stated the phone call between Xi Jinping and Donald Trump on 9 March confirmed China and the US are commonly seeking to resolve the problem through dialogue and consultation. It cited recent meetings between North and South Korean officials in Seoul and Pyongyang as well as Trump’s willingness to meet with Kim Jong-un as further evidence dialogue and consultation are the correct means of resolving the problem. The article also argued China has actively played a constructive role. It declared China will not permit war or chaos to occur on the peninsula since it would not only harm the people of both Koreas but also severely threaten the interests of China and other regional countries. It ended with a call for working hard to ensure the problem is resolved in a way that is consistent with the international community’s expectations.
Xi Jinping’s Important Thought on Taiwan Affairs Shows the Way in a New Era
3.15 The CCP Central Committee’s Taiwan Work Office Theoretical Study Focus Group published an article on Xi Jinping’s important thought on Taiwan affairs in a new era in the Qiushi Journal. The article noted three main components to this thought. First, as Xi has previously observed, the crucial factor determining the direction of cross-strait relations is the progression of China’s development. Second, Xi’s “two shores, one family” (两岸一家亲) concept shows affection and time are both needed to resolve the psychological wounds and pragmatic problems separating the two sides. Third, Xi’s “six anys” (六个如何) policy demonstrates China has the will, confidence, and strength necessary to thwart any form of splittist plot advocating Taiwan independence and will not waver or compromise when faced with any problem involving national sovereignty, territorial integrity, and the Chinese people’s fundamental interests.
UNITED FRONT WORK
Yang Faming: Persevere in the Sinicization of Islam
3.10 Head of the China Islamic Association Yang Faming (杨发明) spoke to the CPPCC National Committee about the sinicization of Islam, saying “we must allow traditional Chinese culture to permeate Islam and jointly guard the spiritual homeland of the Chinese people.” He suggested that the China Islamic Association will work to ensure that socialist core values, traditional Chinese culture, and “Muslim Patriotic Education” will enter the mosque, and religious ceremony, culture, and architecture will embody Chinese characteristics, style, and manner. Yang said that Muslims in China must regard the great rejuvenation of the Chinese nation as the highest interest of the nation, and should actively participate in reform, opening up, and socialist modernization.
Zhang Yijiong: Deeply Learn and Implement the Constitution to Consolidate and Strengthen the United Front in a New Era
3.14 United Front Work Department Executive Deputy Head Zhang Yijiong (張裔炯) voiced support for amendments to China’s constitution, and linked them with key decisions made at the 19th Party Congress and the Party’s united front work. Zhang said that united front work is a political advantage and a strategic policy for the Party to unite the people, and also an important magic weapon (法宝) to achieve revolution, development, and reform. The 19th Party Congress amendments to the CCP Constitution expanded the definition of the united front to include “patriots that devote themselves to the great rejuvenation of the Chinese nation (致力于中华民族伟大复兴的爱国者).” Zhang saw this change as an important guideline for the development of united front work in the new era. He stated that it will unite more Chinese people throughout the world to promote the development of the Party and the country and to realize the China Dream. The development of a harmonious relationship between different ethnic groups was also added to the Party’s constitution. Zhang stated that it will further bring together different groups and help bring out the full advantages and creativity of all the Chinese people.
PARTY DISCIPLINE
“Two Supremes’” Work Reports Reveal Anti-Corruption Data for the First Time
3.10 The Central Commission for Discipline Inspection published a list of anti-corruption data culled from the work reports of the Supreme People’s Court (SPC) and Supreme People’s Procuratorate (SPP). The SPC’s work report indicated the court adjudicated 195,000 bribery and embezzlement cases involving 263,000 individuals, including 101 cadres from the provincial level or higher and 810 from the bureau level. It also showed all levels of courts investigated and punished 1,011 cadres from political and legal departments for violations of the spirit of the Eight-Point Guideline. Courts did the same for 3,338 others who used their right to carry out trials to violate discipline and the law, and severely censured 1,762 leading cadres from the courts for ineffective implementation of their duties over the last five years. The SPP’s work report stated cases were filed against 254,419 cadres for taking advantage of their posts over the last five years, which represented a 16.4% increase over the preceding five years and led to the retrieval of 55.3 billion RMB worth of economic losses. It also noted 62,715 individuals were prosecuted for petty corruption and 222 suspects who fled abroad had been recovered from 42 different countries and regions.
Xi Jinping Explains the Significance of Political Ecology and Political Virtue
3.11 During a meeting with delegates from Chongqing, Xi Jinping explained the significance of political ecology (政治生态) and political virtue (政德). He warned the delegates that political ecology can be likened to natural ecology, as pollution can easily appear when it is not being paid attention to. He described political virtue as a weather vane (风向标) for the morality of the whole of society. The article noted this was not the first time Xi used either of the terms. Political virtue appeared in an article he published in Guangming Daily in 2005 and political ecology was discussed with four provincial delegations during the Two Sessions in 2015 and 2017. Xi also used the meeting to warn delegates against letting pillow talk (枕边风) lead to corruption, their children seek illegal profit, and the people at their side dragging them down.
CENTRAL MILITARY COMMISSION (CMC)
Xi Jinping: Firmly Advance the Deep Development of Civil-Military Integration, Provide Impetus and Strategic Support for Realizing the China Dream and Strong Army Dream
3.12 Xi Jinping addressed People’s Liberation Army (PLA) and People’s Armed Police (PAP) delegations to the National People’s Congress (NPC) about the importance of advancing civil- military integration. He said a “new era” in civil-military integration will “provide the impetus and strategic support for realizing the China Dream and Strong Army Dream.” In his speech, Xi put forward requirements for advancing civil-military integration, including strengthening scientific and technological innovation for national defense, improving independent innovation for national defense science and technology, breaking up monopolies, and improving the allocation of resources for technological innovation. He also called on the entire military to be loyal to the newly-amended constitution and conscientiously abide by and defend it.
COMPREHENSIVELY DEEPENING REFORM
Yin Zhongqing: Supply Side Structural Reform is not Limited to “Three Cuts, One Reduction, One Strengthening”
3.12 Yin Zhongqing (尹中卿), vice chairman of the 12th NPC Financial and Economic Affairs Committee (人大财经委副主任委员), explained to reporters that supply-side structural reform is at the core of China’s economy adapting to the new normal (新常态) and is not limited to the “three cuts, one reduction, one strengthening” (三去一降一补) framework. Some local governments may have had implementation problems, such as private investment failure or displaced steel and coal workers, but these are not common occurrences. Yin said he served as a research group leader, investigating nearly 100 companies in order to write a report for the NPC Standing Committee. Their findings covered 6 main points: [1] correctly understanding the relationship between manufacturing and service industries, noting the development of e-commerce, big data and the Internet as things that will increase the value added in manufacturing; [2] understanding the relationship between government and the market, especially instances of too much or too little oversight; [3] understanding the relationship between manufacturing and finance so as to close the gap between investments and the real economy; [4] understanding the relationship between traditional and emerging industries, keeping in mind there are no backwards industries--only backwards technologies--and older industries should not be discriminated against; [5] handling the relationship between large enterprises and small enterprises, with many large to medium enterprises being state owned and many small to micro enterprises being privately owned and recognizing the advantages of each; [6] understanding the relationship between the domestic and international market. The investigation revealed “the ‘cage’ has been opened in some places, especial coastal areas, but the ‘birds’ have not come in.” (“笼子”腾出来了，但是“鸟”没引进来) He noted that the Belt and Road Initiative has encouraged enterprises to ‘go out’ but manufacturing, especially textiles, is moving out overseas. China must achieve a higher level of openness by carefully managing incoming and outgoing business, and must not prematurely hollow out industries.
“One Committee, One Bank and Two Commissions” Forming a New Financial Regulatory Framework Facilitating Regulatory Coordination
3.14 According to the State Council Structural Reform Plan (国务院机构改革方案) submitted to the 13th NPC, the State Council plans to integrate the China Banking Regulatory Commission (中国银行业监督管理委员会) and the China Insurance Regulatory Commission (中国保险监督管理委员会), to form the China Banking and Insurance Regulatory Commission (中国银行保险监督管理委员会) which will be positioned directly under the State Council, and will prevent and resolve financial risks, protect consumers, and maintain financial stability. This integration marks the end of the “One Bank Three Commissions,” (一行三会) which oversaw financial regulation for the past 5 years. Due to the development of the financial industry, including the creation of new investment vehicles and cross-industry financial risks, it became essential for oversight to become better integrated. The new “One Committee, One Bank and Two Commissions,” (一委一行两会) framework, referring to the State Council Financial Stability Development Committee, the People’s Bank of China, the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission, will further guard and develop China’s financial markets, and pave the way for the new era.
INTERNATIONAL LIAISON WORK
3.13 International Department Vice Minister Wang Yajun (王亚军) met with a delegation of Lao People’s Revolutionary Party cadres headed by the director of the Party’s Education and Training Department. The Laos side reportedly spoke highly of the historical significance of the 19th Party Congress and expressed a willingness to strengthen exchange between the two ruling parties, particularly in the field of propaganda and ideology.
3.16 International Department Vice Minister Li Jun (李军) met with the Iranian Ambassador to China Ali Asghar Khaji. Both sides expressed interest in strengthening exchanges and cooperation between their respective political parties and organizations.
3.16 International Department Minister Song Tao (宋涛) met with Deputy Head of Government (Tánaiste) of Ireland, Minister of Foreign Affairs and Trade, and Deputy Leader of the Fine Gael party Simon Coveney in Beijing. The two sides positively evaluated the strategic partnership between their countries and called for advancing political, economic, and cultural exchange and cooperation.