China's state restructuring will have enduring impact

Subject

Reforms and appointments announced at the National People's Congress.

Significance

A massive restructuring of China's bureaucracy was announced at the annual meeting of China's rubber-stamp parliament this month, where a new cohort of leaders was also promoted to key cabinet positions.

Impacts

• Several new cabinet appointees have international experience, which may improve China's ability to engage effectively with the world.
• Consolidating foreign aid under a new agency could result in more joined-up policy, with more powerful advocates.
• Doing business in China could become easier with a reduction in the number of agencies firms must deal with.
• Consolidating ministries into larger units could create more powerful interest groups able to assert their own agendas.
• If consolidated government organs can better tackle pollution and food and drug safety, this would help ameliorate major public grievances.