On March 7th, 2023, China’s State Council, the cabinet, unveiled plans for one of the biggest institutional overhauls in the country. The government aims to restructure multiple sectors, including financial regulation, to reform institutions nationwide.
The proposed overhaul of the financial sector will consolidate oversight of financial institutions under an administration run by the State Council.
According to the new reforms, the state administration will replace existing regulatory bodies and overtake certain functions of the central bank and securities regulator. With the new set-up, the state-run financial institution would also overlook all financial activities, including those surrounding cryptocurrencies.
Consolidating Control
China’s State Council submitted the plan to the first session of the 14th National People’s Congress for deliberation on March 7th, 2023. The legislature will vote on institutional reforms...