Institutional Reform Brings Three Gospels to the Automotive Industry

According to the reform of the administrative system proposed by the 17th National Congress of the Communist Party of China, the general plan for the reform of the administrative management system was urgently set up, and the sixth government agency reform with the goal of establishing a relatively complete socialist administrative system with Chinese characteristics by 2020 was kicked off.

In this institutional reform, the State Council will newly establish the Ministry of Industry and Information Technology, the Ministry of Transport, the Ministry of Human Resources and Social Security, the Ministry of Environmental Protection, the Ministry of Housing and Urban-Rural Development. After the reform, apart from the General Office of the State Council, the State Council has set up 27 departments.

On the whole, China’s administrative management system basically meets the requirements of economic and social development, but there are still some unacceptable challenges in the face of new situations and new responsibilities. The transformation of government functions is not in place. There is too much interference in microeconomic activities; the establishment of government agencies is not yet reasonable, there is a problem of overlapping of departmental responsibilities, separation of power and responsibility, and inefficiency. For example, the management of the automotive industry has many problems such as “long” management and the fragmentation of management functions. These problems restrict the development of the automobile industry.

The main task of the State Council’s institutional reforms this time is to focus on transforming government functions and clarifying the relationship between departmental responsibilities, exploring the system of implementing a unified organic division of functions, rationalizing the functions of macro-control departments, strengthening energy and environmental management agencies, and consolidating and perfecting industrial and informatization. The management system of the transportation industry shall focus on improving people's livelihood and strengthen integration and integration of social management and public services. The "large department system" reform brought the following gospel to the automotive industry.

First, set up the Ministry of Industry and Information Technology. At present, the management of the industrial sector is under the responsibility of the National Development and Reform Commission, the National Commission for Science and Technology for National Defense, and the Ministry of Information Industry. The management is decentralized and is not conducive to the coordinated development of industry. Therefore, the responsibilities of the National Development and Reform Commission's industrial sector management (excluding the nuclear power management of the National Defense Science and Technology Commission) are assigned to the Ministry of Industry and Information Technology. The main responsibility of the Ministry of Industry and Information Technology is to draw up and organize the implementation of industrial industry planning, industrial policies and standards, monitor the daily operation of the industrial sector, and promote the development of major technological equipment and independent innovation.

In the future, planning, policies, and standards related to the automotive industry will be managed by the Ministry of Industry and Information Technology. The description of the Ministry of Industry and Information Technology's “not to interfere with the production and business activities of enterprises and ensure the market's main body status of enterprises” will provide a good development environment for the automotive industry.

Second, set up the Ministry of Transport. The Ministry of Transportation and the Ministry of Construction will guide the city's passenger transportation duties into the Ministry of Transport. In the next few years, China's transportation is still in a period of great construction and development. In order to optimize the layout of transportation, give full play to the overall advantages and the combination of efficiency, speed up the formation of a convenient, smooth, efficient, and safe integrated transportation system and set up the Ministry of Transport.

The main responsibility of the Ministry of Transport is to formulate and organize the implementation of highway, waterway, and civil aviation industry plans, policies, and standards, to undertake planning and coordination work involving the comprehensive transportation system, and to promote the convergence of various modes of transportation.

Third, establish the Ministry of Environmental Protection and the National Energy Administration. The energy issue is related to the sustainable development of economy and society and national security. At present, China has 40% of crude oil that needs to be imported. The oil shortage and quality of oil products have a bearing on the healthy and harmonious development of the automobile industry. In the future, the National Energy Administration will be responsible for drawing up and organizing the implementation of energy industry planning, industrial policies and standards, the development of new energy, and promoting energy conservation. The National Energy Administration is managed by the National Development and Reform Commission.

Premier Wen Jiabao stated in his government work report that this year China will pay more attention to resource conservation and environmental protection, and increase energy conservation, emission reduction and environmental protection. This year is also a crucial year for the completion of the 11th Five-Year Plan on Energy Conservation and Emission Reduction. The establishment of the Ministry of Environmental Protection and the National Energy Administration is the need to establish a resource-saving and environment-friendly society.