China will set up a new federal financial regulator to replace its existing banking and insurance watchdog, following recently unveiled plans to develop a national data office.
The legislature could vote on reforms soon
According to the financial regulation proposal submitted to the Chinese parliament at its annual session, the State Council would supervise the industry, except for the securities sector.
The China Banking and Insurance Regulatory Commission {CBIRC} would no longer exist under the new system. Its responsibilities and those of the central bank and securities regulators will be transferred to the new administration.
The number of employees in central level state institutions will be reduced by 5% due to more significant government reform.
Winston Ma, an adjunct professor in New York University’s law department, said the review of the financial regulatory system “reflects the new focus on ‘dual circulation,’ both the domestic and global circulation of the economy, and the ‘uniform national markets'”.
Currently, the People’s Bank of China {PBOC}, the China Banking and Insurance Regulatory Commission {CBIRC} and the China Securities Regulatory Commission {CSRC} are in charge of supervising China’s financial sector, with the Development Committee and Financial Stability of the cabinet. have full authority.
According to the proposal, the new administration “will strengthen institutional monitoring, supervision of behaviors, and supervision of functions.”
Li Nan, professor of finance at Shanghai Jiaotong University, suggests that the current structure of the CBIRC combines the functions of the Office of the Comptroller of the Currency {OCC} and the Federal Deposit Insurance Corporation {FDIC} in the United States. , doing in a similar way. scale.
The central bank also plays a regulatory role in this arrangement.
President Xi Jinping last week reiterated his need for comprehensive reforms in party and government institutions. At the party conference in October, Xi officially cemented his position as China’s most powerful leader since Mao Zedong by winning an unprecedented third term of leadership.
The data control system.
In addition, the Chinese government would set up an office to coordinate the development and distribution of data resources, according to a plan submitted to parliament.
The National Development and Reform Commission {NDRC}, a powerful state planner, would oversee the proposed agency, which will take over part of the functions currently carried out by the Office of the Central Commission for Cyberspace Affairs, which regulates the Internet in China.
The new office’s duties will include promoting smart cities and sharing information resources across industries.
China has tightened control over data in recent years amid concerns that unregulated collection by private companies could allow competing states to weaponize information about infrastructure and other national interests and the perception that data Data has become a valuable economic resource.
According to a senior source at a Chinese IT company, the office’s main responsibility would be to develop the data mart. Organizations like the Cyberspace Administration of China would continue to handle regulatory duties.
