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China Axes Nine State Administrations
China took a big step further to streamline its government institutions Monday when it cut down nine state administrations.
The administrations formerly oversaw the sectors of coal, textiles, internal trade, metallurgical, petrochemical, building materials, non-ferrous metal, machinery and light industry.
After the reshuffle, the administrative functions of these administrations were handed over to the State Economic and Trade Commission (SETC).
Sheng Huaren, minister in charge of the SETC, said "The move, which the State Council planned in 1998, represents China's further efforts to separate government functions from those of enterprises."
"It is also a continuation of 1998's government institution reform, which is aimed at building a simplified, uniform and efficient government administrative structure," Sheng told a press conference here Monday.
These nine administrations were originally state ministries in charge of related industrial sectors. It was in 1998 that they were demoted to administrations under the SETC.
From 1998 to 2000, a series of related reforms were carried out to make preparations to further downsize the administrations, including the separation of public institutions and enterprises from them.
Local bureaus in charge of related industries were also closed down by the government, with some of their administrative functions shifted to local economic and trade commissions.
Sheng said the SETC will focus on providing instructions and service to enterprises, and gradually ease restrictions on enterprises while strengthening supervision.
According to him, the SETC has made some readjustments inside itself, including the removal of three departments and the establishment and reshuffle of five comprehensive departments. The number of staff has increased from 450 to 750, with 300 coming from the nine former administrations.
Meanwhile, the role of industrial associations to bridge the government with enterprises will be strengthened, and the SETC will authorize the ten comprehensive industrial associations to oversee the other 200-plus associations nationwide.
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