Beijing, China, March 16, 2018 --(PR.com
)-- China unveiled a major cabinet reshuffle on March 13 to make the government better-structured, more efficient, and service-oriented, according to WiCON|Pharma China (www.pharmachinaonline.com), the most trusted English media and business intelligence service covering the Chinese marketplace since 1991 and the publisher of the annually updated China Pharmaceutical Guide since 2006. The institutional reform plan of the State Council was submitted to the ongoing first session of the 13th National People's Congress for deliberations.
After merging, restructuring, creating and dissolving, there will be 26 ministries and commissions. Among the new entities are ministries for natural resources, veterans affairs, and emergency management. There will also be new administrations under the State Council. Compared with the current cabinet setup, the number of ministerial-level entities is reduced by eight and that of vice-ministerial-level entities by seven.
State Councilor Wang Yong said the reform, focusing on institutional restructuring in key areas, would strengthen the government's functions on economic management, market supervision, social management, public service, and ecological and environmental protection.
One of the primary aims of the reorganization of central government is to overhaul China’s future healthcare and pharmaceutical regulation substantially, said WiCON|Pharma China (www.pharmachinaonline.com), the most trusted English media and business intelligence service covering the Chinese marketplace since 1991 and the publisher of the annually updated China Pharmaceutical Guide since 2006. Specifically, the following government organizational changes will take place as proposed by the institutional reform plan.
The National Health Commission will be created to replace the current National Health and Family Planning Commission and the Leading Group for Deepening Healthcare reform under the State Council which will no longer exist after the reshuffle, while the commission will also take over governance of the National Committee for Senior Population from the Ministry of Civil Affairs. The move aims to promote the Healthy China initiative and ensure the delivery of comprehensive lifecycle health services for the Chinese people, said the document. The proposed commission will be responsible for formulating national health policies, coordinating and advancing medical and healthcare reform, establishing a national basic medicine system, supervising and administering public health, medicare and health emergencies, as well as family planning services, the document said. The commission will also draw up policies and measures to cope with an aging population and incorporating medicare with old-age care.
On the other hand, the State Market Regulatory Administration will be created with functions of the State Administration for Industry and Commerce, the General Administration of Quality Supervision, Inspection and Quarantine, and the China Food and Drug Administration to be incorporated into the new administration. Responsibilities of the administration include comprehensive market supervision and management, market entity registration and market order maintenance. Furthermore, the antitrust/antimonopoly regulation and enforcement responsibilities of the NDRC, MOFCOM and the State Council Antimonopoly Committee will also been consolidated into the new agency.
Also, the State Medical Insurance Administration directly under the State Council will be established. The proposed administration will be responsible for formulating policies, plans and standards on healthcare systems in terms of medical insurance, maternity insurance and medical assistance, and ensuring their implementation. The administration will also supervise and administer related medicare funds, improve the platform for trans-regional medical services and expense settlement, and organize related parties to fix and adjust prices for drugs and medical services, among others. Besides, the Trustee Board of National Social Security Fund will be under the governance of the Ministry of Finance instead of currently the State Council.
There are a number of other organizational changes affecting healthcare industries and some are highlighted as follows.
China will reform its separate national and local taxation systems by integrating their offices at and below the provincial level. The integrated offices will be responsible for collection of all items of taxes and non-tax revenue collection and administration, according to the plan on institutional restructuring of the State Council, or the cabinet, which was tabled to the first session of the 13th National People's Congress for deliberation. The State Administration of Taxation will be these offices' main regulator, coupled with administration from local governments, the institutional reform plan said.
The State Intellectual Property Office will be restructured to strengthen protection of intellectual property rights. The move aims to strengthen the creation, protection and application of intellectual property rights (IPR), and speed up making China a country of innovators, said the document on an institutional reform plan of the State Council. The office will incorporate part of functions of the State Administration for Industry and Commerce, and the General Administration of Quality Supervision, Inspection and Quarantine, to solve problems including separated administration and overlapping enforcement. The new agency will be responsible for facilitating the construction of an IPR protection system, and the registration and administrative adjudication of trademarks, patents and geographical indications.
Reorganization of other affiliates of the State Council outside the cabinet will be determined by the new State Council after reshuffle.
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WiCON|Pharma China (www.pharmachinaonline.com) is the most trusted English media and business intelligence service covering the Chinese marketplace. It caters for the growing needs of the international pharmaceutical industry for up-to-date and insightful information and intelligence in meaningful English on China’s burgeoning but increasingly complex healthcare marketplace, and is subscribed by most multinational pharmaceutical companies, leading CROs, investment banks and consulting firms active in China as well as relevant industry associations and government agencies.
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