BEIJING—China is merging its banking and insurance regulators, giving new powers to policymaking bodies such as the central bank and creating new ministries in the biggest shake-up of the Chinese Communist Party’s (CCP) state apparatuses in years.
The revamp is a cornerstone of Chinese leader Xi Jinping’s agenda to put the leadership of the CCP squarely at the heart of policy, with Xi himself at the core of the Party.
The economy and the CCP have become ever more intertwined since a party congress in October when Xi consolidated his grip on power, with party control deemed necessary to help push through reforms. On March 11, presidential term limits were removed from the state constitution.
“Deepening the reform of the party and state institutions is an inevitable requirement for strengthening the long-term governance of the Party,” Liu He, Xi’s top economic adviser and confidant, wrote in a commentary in the state mouthpiece People’s Daily.
“Strengthening the Party’s overall leadership is the core issue,” he said.
The commentary suggested the party will have greater influence and say in the government, or the State Council, which is headed by Premier Li Keqiang, some analysts say.
