The Ministry of Finance of the People's Republic of China is the constituent department of the

State Council of the People's Republic of China The State Council of the People's Republic of China, also known as the Central People's Government, is the chief administrative authority and national cabinet. It is constitutionally the highest administrative organ of the country and the e ...

which administers

macroeconomic Macroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies. Macroeconomists study topics such as output/ GDP ...

policies and the annual

budget A budget is a calculation plan, usually but not always financial plan, financial, for a defined accounting period, period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including tim ...

. It also handles

fiscal policy In economics and political science, fiscal policy is the use of government revenue collection ( taxes or tax cuts) and expenditure to influence a country's economy. The use of government revenue expenditures to influence macroeconomic variab ...

economic regulation Regulatory economics is the application of law by government or regulatory agencies for various economics-related purposes, including remedying market failure, protecting the environment and economic management. Regulation Regulation is gener ...

s and

government expenditure Government spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting, the acquisition by governments of goods and services for current use, to directly satisfy the individual o ...

for the state. The ministry also records and publishes annual

data on China's economy. This includes information such as previous

economic growth In economics, economic growth is an increase in the quantity and quality of the economic goods and Service (economics), services that a society Production (economics), produces. It can be measured as the increase in the inflation-adjusted Outp ...

rates in China, central

government debt A country's gross government debt (also called public debt or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit occu ...

and borrowing and many other indicators regarding the economy of mainland China. The Ministry of Finance's remit is smaller than its counterparts in many other states. Macroeconomic management is primarily handled by the

National Development and Reform Commission The National Development and Reform Commission (NDRC) is the third-ranked executive department of the State Council of the People's Republic of China, which functions as a macroeconomic management agency. Established as the State Planning C ...

(NDRC). State-owned industries are the responsibility of the State-owned Assets Supervision and Administration Commission, and there are separate regulators for

banking A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...

insurance Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect ...

and

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

. It also does not handle regulation of the

money market The money market is a component of the economy that provides short-term funds. The money market deals in short-term loans, generally for a period of a year or less. As short-term securities became a commodity, the money market became a compo ...

s or

interest rate An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, ...

s. These, together with other aspects of

monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to affect monetary and other financial conditions to accomplish broader objectives like high employment and price stability (normally interpreted as a low and stable rat ...

, are governed by the

People's Bank of China The People's Bank of China (officially PBC and unofficially PBOC) is the central bank of the People's Republic of China. It is responsible for carrying out monetary policy as determined by the ''PRC People's Bank Law'' and the ''PRC Commercia ...

(PBC), mainland China's central bank. The Ministry, NDRC and PBC are equal in status, with their political heads all sitting on the State Council.

History

The Ministry of Finance of the People's Republic of China was formerly known as the Ministry of Finance of the Central People's Government, which was established on October 1,1949. In September 1954, the First Session of the First National People's Congress was held in Beijing, at which the Constitution of the People's Republic of China and the

Organic Law of the State Council The Organic Law of the State Council of the People's Republic of China is a legislation concerning the organization of the State Council. It was passed by the fifth session of the 5th National People's Congress on 10 December 1982 and came into ...

were adopted. The former Ministry of Finance of the Central People's Government was transformed into the Ministry of Finance of the People's Republic of China, which took over the related work and became a constituent department of the State Council. On 1 July 1967, during the

Cultural Revolution The Cultural Revolution, formally known as the Great Proletarian Cultural Revolution, was a Social movement, sociopolitical movement in the China, People's Republic of China (PRC). It was launched by Mao Zedong in 1966 and lasted until his de ...

, the

Central Committee of the Chinese Communist Party The Central Committee of the Chinese Communist Party, officially the Central Committee of the Communist Party of China, is the Central committee, highest organ when the National Congress of the Chinese Communist Party, national congress is not ...

, the State Council and the

Central Military Commission Central Military Commission may refer to: *Central Military Commission (China), the highest national defense organization in the People's Republic of China. *Central Military Commission of the Communist Party of Vietnam, the highest body in Vietnam ...

decided to implement military rule over the ministry; the Director of the Military Control Commission Yin Chengzhen became the head of the ministry. In 1969, the State Council approved the consolidation of PBC's headquarters as a bureau within the Ministry of Finance. Local PBC branches were merged into local government finance departments. The Military Control Commission was replaced with a Revolutionary Committee on 22 June 1970. The ministry was reorganized and restored its ministerial system in January 1975. In 1978, the PBC was separated from the Ministry of Finance. The Ministry held China's first bond auction in 1996. In 2009, the Ministry converted its ownership of $200 billion of China Investment Corporation's debt into equity, a result which relieved CIC of interest payments on the special treasury bonds that had initially capitalized it and instead resulted in CIC paying an annual dividend to the Ministry. The Ministry has sought to implement

property tax A property tax (whose rate is expressed as a percentage or per mille, also called ''millage'') is an ad valorem tax on the value of a property.In the OECD classification scheme, tax on property includes "taxes on immovable property or Wealth t ...

es since the early 2010s, but has been opposed on this issue by the National People's Congress and many local governments. As of at least early 2024, property taxes have been kept off the legislative agenda. The Ministry is among the state entities which contribute to the China Integrated Circuit Industry Investment Fund, which was established in an effort to decrease China's reliance on foreign

semiconductor A semiconductor is a material with electrical conductivity between that of a conductor and an insulator. Its conductivity can be modified by adding impurities (" doping") to its crystal structure. When two regions with different doping level ...

companies. The fund was established in 2014. In 2015, the Ministry of Finance allocated 2 billion RMB to establish

e-commerce E-commerce (electronic commerce) refers to commercial activities including the electronic buying or selling products and services which are conducted on online platforms or over the Internet. E-commerce draws on technologies such as mobile co ...

centers in some of the least developed areas of rural China. This approach has since inspired similar strategies in Egypt,

India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...

, and Vietnam.

Role

During the pre-Reform period of centrally planned public finance, capitalization of industrial and infrastructure projects has handled through public expenditure. The State Planning Commission designated projects and the Ministry allocated revenue to them. The main functions of the Ministry is to carry out the following duties of the state:Ministry Of Finance People's Republic Of China
The Ministry of Finance in involved the

foreign aid In international relations, aid (also known as international aid, overseas aid, foreign aid, economic aid or foreign assistance) is – from the perspective of governments – a voluntary transfer of resources from one country to another. The ...

process through making China's donations to multilateral financial institutions.

Organizational structure

Organizational structure obtained from the Ministry of Finance website: *General Office *Policy & Programme Department *Legal Department *Tax Policy Department *Tariff Policy Department *Budget Department *Treasury Department *National Defense Department *Administrative & Law Enforcement Department *Education, Science & Culture Department *Economic Construction Department *Agriculture Department *Social Security Department *State Equity & Corporate Finance Department *Finance Department *International Department *Accounting Regulatory Department *Supervision Department *State Rural Development Office *Personnel & Education Department

Leadership

All of the leaders are members of the Ministry's Communist Party Committee, with Lan Fo'an as its secretary.

As shareholder

The MOF also acted as the controlling shareholder for a number of financial service companies of China, such as

People's Insurance Company of China The People's Insurance Company (Group) of China Limited, known as PICC Group or just PICC, is a Chinese listed insurer. The Chinese Central Government is the controlling shareholder. The group contains the major subsidiaries: PICC Asset Managem ...

, China Life Insurance Group (parent of China Life), China Taiping Insurance Group (parent of China Taiping Insurance Holdings), etc. The Ministry also owned

Industrial and Commercial Bank of China The Industrial and Commercial Bank of China (ICBC; zh, 中国工商银行) is a Chinese partially state-owned multinational banking and financial services corporation headquartered in Beijing, China. It is the largest of the " big four" banks ...

, the

Agricultural Bank of China The Agricultural Bank of China (ABC), also known as AgBank, is a Chinese partially state-owned multinational banking and financial services corporation headquartered in Beijing, China. It is one of the " big four" banks in China, and the second ...

, the

Bank of Communications Bank of Communications (BOCOM or BankComm) is a Chinese multinational banking and financial services corporation. It was originally established in 1908 and was one of a handful of domestic Chinese banks that issued banknotes in modern history. ...

, China Great Wall Asset Management,

China Cinda Asset Management China Cinda Asset Management Co., Ltd., doing business as Cinda or China Cinda, is a Chinese distressed asset management company headquartered in Beijing. The corporation was founded as a state-owned enterprise and a bad bank for China Constru ...

, China Orient Asset Management, China Huarong Asset Management and

China Re China Reinsurance (Group) Corporation () ("China RE") is one of the largest reinsurance groups in China. History and Company Background China Reinsurance Group, which is commonly referred to as China Re originated from the People's Insurance Co ...

, etc. MOF also owned

China Railway China State Railway Group Co., Ltd., doing business as China Railway (CR), is the national passenger and freight railroad corporation of the China, People's Republic of China. China Railway operates passenger and freight Rail transport in Chi ...

, China Tobacco and

CITIC Group CITIC Group Corporation Ltd., formerly the China International Trust Investment Corporation (CITIC), is a state-owned investment company of the People's Republic of China, established by Rong Yiren in 1979 with the approval of Deng Xiaoping. ...

References

External links

* {{DEFAULTSORT:Ministry Of Finance Of The People's Republic Of China Finance in China

Finance Finance refers to monetary resources and to the study and Academic discipline, discipline of money, currency, assets and Liability (financial accounting), liabilities. As a subject of study, is a field of Business administration, Business Admin ...

China China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...

Ministries established in 1949 Government finances in China

History

Role

Organizational structure

Leadership

As shareholder

See also

References

External links