China's government overhaul
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Time to say goodbye: Outgoing Premier Zhu Rongji gives his final speech to congress.
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SPECIAL REPORT
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BEIJING, China (Reuters) -- China's parliament has approved an overhaul of government ministries, creating new agencies aimed at eliminating bureaucratic overlap and spurring reform of rickety banks and state firms.
The plan by the cabinet, or State Council, is the third major government structuring, following ones in 1993 and 1998 aimed mainly at slashing the number of ministries and staff.
The following is an overview of the changes.
• The State Economic and Trade Commission will be eliminated, with duties farmed out to other ministries.
• The State Development Planning Commission will be renamed the State Development Reform Commission. It will become the super-ministry in charge of guiding overall reform efforts.
• The Ministry of Foreign Trade and Economic Cooperation will become the Ministry of Commerce, which will oversee international and domestic trade.
• The China Banking Regulatory Commission will be carved out of the central bank to oversee banking sector. It will help banks modernize and get rid of bad loans.
• The State Asset Management Commission will act as holding company for government stakes in state-run enterprises. It is expected to reduce holdings over time.
• The State Food and Drug Administration will have oversight of pharmaceutical and food industries.
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