China unveils cabinet restructuring plan

BETTER REGULATION

In a big change, the China Banking Regulatory Commission and the China Insurance Regulatory Commission will be replaced by a banking and insurance regulatory commission.

The move is aimed at solving existing problems such as unclear responsibilities, cross-regulation, and absence of supervision.

Chen Nanhuan, a branch manager at the Agricultural Bank of China, said a unified regulator will be more effective to forestall risks.

"It prevents companies from dodging supervision that is not uncommon under current two regulator system," Chen said.

At the same time, the banking and insurance regulator will shift some duties to the People's Bank of China, a sign of consolidating regulatory power by the central bank.

Loopholes in the regulatory system needed to be closed, flaws corrected, and all existing risks dealt with immediately, central bank governor Zhou Xiaochuan warned last week.

Aside from creating a new financial regulatory, a state market regulatory administration will be formed, replacing three agencies which have overlapping duties to strengthen oversight of food, drugs, consumer and industrial products, among others.

New entities will be set up to better manage natural resources and protect the environment.

A new ministry of natural resources will make overall planning and oversee the development and protection of the natural resources.

The ministry of ecological environment will be tasked with making and enforcing environmental protection policies, as well as ecological monitoring. It takes over the role of the National Development and Reform Commission concerning climate change response.

Faced with an arduous challenge to tackle pollution, China is making headway.

The central government says it will take more action to build a "Beautiful China," where the skies are blue, the land is green, and the water is clear.

GLOBAL EXCHANGE

Another highly-watched move is the forming of an international development cooperation agency. The agency will assume duties now scattered in the Ministry of Foreign Affairs and the Ministry of Commerce.

Wang, the state councilor, said the move will give full play to foreign aid as a key means of major-country diplomacy, enhance strategic planning and coordination of foreign aid, and better serve the country's overall diplomatic layout and the Belt and Road Initiative.

China has emerged as a key provider of foreign aid to the developing world. Its aid -- ranging from food, disaster relief materials, and machinery to schools, houses, and infrastructure projects -- can be seen across Asia, Africa, and Latin America.

According to a government white paper issued in December 2016, China has given about 400 billion yuan ($63.5 billion) in development aid to 166 countries and international organizations in the past six decades.

Wen Chao, a manager at Guangdong Agribusiness Group, said the new agency was highly anticipated by companies participating in aid projects.

In a move seen to boost the charm of Chinese culture, the cabinet will merge the Ministry of Culture with National Tourism Administration. Wang said it would help enhance China's "soft power" and cultural influence.

China also plans to set up a state immigration administration under the Ministry of Public Security.

Explaining the move, Wang said the number of foreigners working and living in China has been rising, creating new requirements for immigration administration and services.

Guangzhou is one of the Chinese cities seeing a boom of foreign migrants in recent years.

Liu Baochun, a foreign liaison official based in the city, said an immigration office is very necessary for China and fits its status as the world's second largest economy with extensive exchanges with the world.

"A growing China will attract more foreigners to come," he said.