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National Development and Reform Commission
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| 中华人民共和国国家发展和改革委员会 | |
Logo of the National Development and Reform Commission | |
| Agency overview | |
|---|---|
| Formed | November 1952 |
| Preceding agencies |
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| Type | Constituent Department of the State Council (cabinet-level) |
| Jurisdiction | Government of China |
| Headquarters | 38 Yuetan South Street, Xicheng District, Beijing |
| Minister responsible | |
| Parent agency | State Council |
| Child agency | |
| Website | en |
| National Development and Reform Commission | |||||||
|---|---|---|---|---|---|---|---|
| Simplified Chinese | 国家发展和改革委员会 | ||||||
| Traditional Chinese | 國家發展和改革委員會 | ||||||
| Literal meaning | State Development and Reform Commission | ||||||
| |||||||
| Commonly abbreviated as | |||||||
| Simplified Chinese | 发改委 | ||||||
| Traditional Chinese | 發改委 | ||||||
| Literal meaning | Develop-Reform-Commission | ||||||
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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 Commission, the NDRC has broad administrative and planning control over the economy of mainland China, and has a reputation of being the "mini-state council".[1]
History
[edit]The body was first established in November 1952 as the State Planning Commission of the Central People's Government. It was modeled after Gosplan.[2]: 109 Gao Gang was its first director.[2]: 109 In 1954, it was transformed to the State Planning Commission of the People's Republic of China. The NDRC's functions are to study and formulate policies for economic and social development, maintain the balance of economic development, and to guide restructuring of the economic system of mainland China.[3]
In March 1998, the commission was renamed into the State Development Planning Commission. It was renamed again in March 2003 to its current name, the National Development and Reform Commission.[citation needed]
In 2005, the NDRC issued a circular economy-focused policy document requiring maximization of recycling and reuse of wastewater, exhaust gas, and water residue generated during mining and smelting.[4]: 12
In 2008, the NDRC issued a set of policies designed to further development the economies of central regions of China, consistent with the Hu-Wen administration's efforts to balance regional development.[5]: 217
In 2016, the NDRC and Alibaba Group signed an agreement to promote rural e-commerce development.[6]: 129
In 2017, the NDRC announced the creation of China's national carbon emissions trading system.[7]: 76
Prior to 2018, it was also responsible for enforcing China's antitrust law, but this function has been transferred to the State Administration for Market Regulation as part of the deepening the reform of the Party and state institutions. In February 2015, the NDRC completed an investigation into Qualcomm, finding that violated the Anti-Monopoly Law by imposing unreasonable requirements for patent licensing.[8] Qualcomm was fined the equivalent of US$975 million.[8] Also in 2018, the NDRC's climate policymaking functions were transferred to the newly created Ministry of Ecology and Environment.[9]: 95
On 19 December 2020, the NDRC published rules for reviewing foreign investment on national security grounds.[10][11] The rules allow government agencies "to preview, deny and punish foreign investment activities in areas that are deemed as important to national security."[11] In October 2021, the NDRC published rules restricting private capital in "news-gathering, editing, broadcasting, and distribution."[12]
On 4 September 2023, the NDRC announced it established the Private Economy Development Bureau in order monitor the country's private economy, as well as establish regular communication with private businesses.[13]
Functions
[edit]The NDRC is China's main macroeconomic control institution,[14]: 102 as well as the top organization in the State Council in matters related to economic policymaking. It oversees the planning system in China, including producing the Chinese Communist Party's five-year plans.[15] The NDRC has responsibilities over economic targets, price policies, market policies, supply-side structural reform, overseas investment, domestic investment policy, regional development strategies, industrial development strategies, major infrastructure projects, consumption policy, innovation-driven development, scientific and technological infrastructure, high-tech industries, social development, basic public services and social development.[15] NDRC's responsibility for large infrastructure is intended to prevent the economy from becoming too hot or cold, as well as to address China's overcapacity in production for sectors like aluminum, iron, steel, and energy.[14]: 106
The NDRC works with other departments to formulate policies, including drafting laws and regulations.[16]: 39 It monitors Chinese businesses' outbound foreign direct investment to ensure they do not invest in blacklisted projects.[17]: 80 The NDRC must approve sensitive projects, including projects in countries that do not recognize the People's Republic of China, projects in countries experiencing civil war or other major domestic difficulties, or projects involving sensitive subject matter like cross-border water issues or weapons production.[17]: 80 The NDRC maintains the Negative List for Market Access, which identifies the economic sectors which cannot receive private investment.[18]: 194
The NDRC works with the National Health Commission to research demographic trends and formulate policies on population.[15] It promotes sustainable development strategies.[16]: 39 The NDRC is involved in the foreign aid process through coordinating aid to other countries for climate cooperation.[17]: 73 The NDRC is also one of the main government agencies responsible for data collection for the Chinese Social Credit System.[19] The NDRC's Social Development Division has a planning role in cultural industries including sports, tourism, and mass media.[20]: 100
The NDRC manages the General Offices several leading groups, including the National Defense Mobilization Commission, the State Council Leading Group for Western Development, and the State Council Leading Group for the Revitalization of Old Industrial Bases in Northeast China; all of these are led by the premier.[15] It also hosts the General Offices of the State Council Leading Group for Promoting the Belt and Road Initiative, the Leading Group for Coordinated Development of the Beijing-Tianjin-Hebei Region, the Leading Group for Promoting the Development of the Yangtze River Economic Belt, the Leading Group for Promoting the Development of the Guangdong-Hong Kong-Macao Greater Bay Area, and the Leading Group for Promoting Comprehensive Deepening of Reform and Opening in Hainan; these are led by the first-ranking vice premier, with the NDRC chairman usually being the Office director.[15]
Structure
[edit]The National Development and Reform Commission has the following structure:[21][22][23]
List of ministers
[edit]Officially, the candidate for the chairperson of the NDRC is nominated by the premier of the State Council, who is then approved by the National People's Congress or its Standing Committee and appointed by the president.[24] The commission has been chaired by Zheng Shanjie since March 2023.
| No. | Name | Office | Took office | Left office | Premier |
|---|---|---|---|---|---|
| 1 | Gao Gang | Chairman of the Central People's Government State Planning Commission |
November 1952 | August 1954 | Independent of the Premier Zhou Enlai |
| 2 | Li Fuchun | Chairperson of the State Planning Commission |
September 1954 | January 1975 | Zhou Enlai |
| 3 | Yu Qiuli | January 1975 | August 1980 | Zhou Enlai Hua Guofeng | |
| 4 | Yao Yilin | August 1980 | June 1983 | Zhao Ziyang | |
| 5 | Song Ping | June 1983 | June 1987 | ||
| 6 | Yao Yilin | June 1987 | December 1989 | Zhao Ziyang Li Peng | |
| 7 | Zou Jiahua | December 1989 | March 1993 | Li Peng | |
| 8 | Chen Jinhua | March 1993 | March 1998 | ||
| 9 | Zeng Peiyan | Chairperson of the State Development Planning Commission |
March 1998 | March 2003 | Zhu Rongji |
| 10 | Ma Kai | Chairperson of the National Development and Reform Commission | March 2003 | March 2008 | Wen Jiabao |
| 11 | Zhang Ping | March 2008 | 16 March 2013 | ||
| 12 | Xu Shaoshi | 16 March 2013 | 24 February 2017 | Li Keqiang | |
| 13 | He Lifeng | 24 February 2017 | 12 March 2023 | ||
| 14 | Zheng Shanjie | 12 March 2023 | Incumbent | Li Qiang |
Internal organization
[edit]- General Office
- Policy Research Office
- Development Strategy and Planning Department
- National Economic Affairs Department
- Economic Operation Regulation Bureau
- Department of System Reform
- Fixed Asset Investment Department
- Private Economic Development Bureau
- Department of Foreign Investment and Overseas Investment (Hong Kong, Macao and Taiwan Office)
- Department of Regional Coordinated Development (Office of the Central Leading Group for Regional Coordinated Development)
- Regional Development Division
- Department of Regional Openness (Office of the Leading Group for Promoting the Construction of the Belt and Road Initiative)
- Rural Economy Department
- Department of Infrastructure Development (Office of the Leading Group for Promoting the Development of the Yangtze River Economic Belt)
- Low-altitude Economic Development Department
- Department of Industrial Development
- Department of Innovation and High Technology Development
- Department of Resources Conservation and Environmental Protection
- Social Development Department
- Employment, Income Distribution and Consumption Department
- Economic and Trade Department
- Department of Finance, Banking and Credit Construction
- Price Department
- Regulatory Department
- International Cooperation Department
- Personnel Department
- Department of Economic and Defense Coordination Development
- Evaluation and Supervision Department
- Party Committee
- Retired Cadres Bureau
Bureaus under the NDRC
[edit]- National Food and Strategic Reserves Administration (Vice-Ministerial Level)
- National Energy Administration (Vice-Ministerial Level)
- National Bureau of Statistics (Vice-Ministerial Level)
Directly affiliated institutions
[edit]- State Information Center (National E-Government Extranet Management Center)
- China Macroeconomic Research Institute
- Office Service Center
- Infrastructure Property Management Center
- Training Center (Publicity Center)
- Price Certification Center
- Research Center for Coordinated Development of Economy and Defense
- National Investment Project Review Center
- Price Monitoring Center
- International Cooperation Center
- Center for Reform and Development of Cities and Small Towns
- Price and Cost Research Center
- Belt and Road Initiative Promotion Center
- Innovation-Driven Development Center (Digital Economy Research and Development Center)
- National Energy Conservation Center (National Development and Reform * Commission Energy Conservation Information Dissemination Center)
- National Geospatial Information Center
- National Public Credit Information Center
- Business Environment Development Promotion Center
- Xi Jinping Economic Thought Research Center
- China Development and Reform Press
- China Economic and Business Magazine
- Editorial Department of Macroeconomic Management
- Editorial Department of China Economic and Trade Guide
- National Development and Reform Commission Macroeconomics Magazine
Advisory and deliberative bodies
[edit]- Academic Committee
Responsible social groups
[edit]- China Economic System Reform Research Association
- China Macroeconomics Society
- Chinese Human Resources Development Research Association
- China Center for International Economic Exchanges
Directly affiliated enterprise units
[edit]- China Planning Publishing House Co., Ltd.
- China Market Publishing Co., Ltd.
Leadership
[edit]Officially, the candidate for the chairperson of the NDRC is nominated by the premier of the State Council, who is then approved by the National People's Congress or its Standing Committee and appointed by the president.[24] The commission has been chaired by Zheng Shanjie since March 2023.
- Minister in charge of the National Development and Reform Commission
- Vice-ministers
- Mu Hong - Minister level, Deputy General Office chief of the Central Leading Group for Comprehensively Deepening Reforms
- Zhang Yong - Minister level
- Ning Jizhe - Minister level[3]
See also
[edit]References
[edit]- ^ Woodall, Brian (May 29, 2014). "The Development of China's Developmental State: Environmental Challenges and Stages of Growth". China Research Center. Retrieved June 2, 2019.
- ^ a b Hirata, Koji (2024). Making Mao's Steelworks: Industrial Manchuria and the Transnational Origins of Chinese Socialism. Cambridge Studies in the History of the People's Republic of China series. New York, NY: Cambridge University Press. ISBN 978-1-009-38227-4.
- ^ a b "中华人民共和国国家发展和改革委员会".
- ^ Zhou, Weihuan; Crochet, Victor; Wang, Haoxue (January 30, 2025). "Demystifying China's Critical Minerals Strategies: Rethinking 'De-risking' Supply Chains". World Trade Review: 1–25. doi:10.1017/S1474745624000193. ISSN 1474-7456.
- ^ Ang, Yuen Yuen (2016). How China Escaped the Poverty Trap. Cornell University Press. ISBN 978-1-5017-0020-0. JSTOR 10.7591/j.ctt1zgwm1j.
- ^ Liu, Lizhi (2024). From Click to Boom: The Political Economy of E-Commerce in China. Princeton University Press. ISBN 9780691254104.
- ^ Ding, Iza (2020). "Pollution Emissions Trading in China". In Esarey, Ashley; Haddad, Mary Alice; Lewis, Joanna I.; Harrell, Stevan (eds.). Greening East Asia: The Rise of the Eco-Developmental State. Seattle: University of Washington Press. ISBN 978-0-295-74791-0. JSTOR j.ctv19rs1b2.
- ^ a b Cheng, Wenting (2023). China in Global Governance of Intellectual Property: Implications for Global Distributive Justice. Palgrave Socio-Legal Studies series. Palgrave Macmillan. p. 124. ISBN 978-3-031-24369-1.
- ^ Lewis, Joanna I. (2023). Cooperating for the Climate: Learning from International Partnerships in China's Clean Energy Sector. Cambridge, Massachusetts: The MIT Press. ISBN 978-0-262-54482-5.
- ^ "China issues national security rules on foreign investment". Reuters. December 19, 2020.
- ^ a b "China Defends National Security Rules for Foreign Investment". Bloomberg News. December 19, 2020.
- ^ Hui, Mary (October 11, 2021). "China wants an even more dominant state monopoly on the media". Quartz. Retrieved October 11, 2021.
- ^ Huang, Raffaele (September 4, 2023). "China Creates Government Body to Support Private Sector". The Wall Street Journal. Retrieved September 5, 2023.
- ^ a b Li, David Daokui (2024). China's World View: Demystifying China to Prevent Global Conflict. New York, NY: W. W. Norton & Company. ISBN 978-0393292398.
- ^ a b c d e "Decoding Chinese Politics". Asia Society. Retrieved October 2, 2023.
- ^ a b Zhang, Angela Huyue (2024). High Wire: How China Regulates Big Tech and Governs Its Economy. Oxford University Press. ISBN 9780197682258.
- ^ a b c Chen, Muyang (2024). The Latecomer's Rise: Policy Banks and the Globalization of China's Development Finance. Ithaca and London: Cornell University Press. ISBN 9781501775857. JSTOR 10.7591/jj.6230186.
- ^ Borst, Nicholas (2025). The Bird and the Cage: China's Economic Contradictions. Singapore: Palgrave Macmillan. ISBN 978-981-96-3996-0.
- ^ Liang & al. (2018). "Constructing a Data-Driven Society: China's Social Credit System as a State Surveillance Infrastructure". Policy & Internet. 10 (4): 415–453. doi:10.1002/poi3.183. S2CID 149771597.
- ^ Lin, Chunfeng (2023). Red Tourism in China: Commodification of Propaganda. Routledge. ISBN 9781032139609.
- ^ "机构设置图". 中华人民共和国国家发展和改革委员会. February 28, 2015. Archived from the original on December 1, 2017. Retrieved November 26, 2017.
- ^ "委直属联系单位". 中华人民共和国国家发展和改革委员会. Archived from the original on November 24, 2017. Retrieved November 26, 2017.
- ^ 财政部办公厅、中宣部文改办. "财政部办公厅、中宣部文改办关于报送2018年中央文化企业改革发展情况报告的通知(财办文〔2019〕26号)附件2:文化企业名单". 中华人民共和国财政部. Archived from the original on September 10, 2020. Retrieved August 26, 2020.
- ^ a b "Constitution of the People's Republic of China". National People's Congress. Retrieved August 8, 2022.
External links
[edit]National Development and Reform Commission
View on GrokipediaHistorical Background
Origins in Central Planning
The State Planning Commission, the direct institutional precursor to the National Development and Reform Commission, was established on November 14, 1952, by the Central People's Government of the People's Republic of China as the central agency for economic planning and management.[4] Modeled on the Soviet Union's Gosplan, it was tasked with formulating national economic plans, allocating resources, setting production quotas, and coordinating industrial development in a command economy framework. Initial leadership included Gao Gang as chairman, reflecting the early emphasis on rapid industrialization aligned with Soviet aid and expertise following the 1950 Sino-Soviet Treaty of Friendship, Alliance, and Mutual Assistance.[5] In 1953, the Commission spearheaded the First Five-Year Plan (1953–1957), which prioritized heavy industry, infrastructure, and agriculture collectivization, drawing over 150 Soviet technical experts and securing approximately US$1.4 billion in Soviet loans for 156 key projects.[6] The plan targeted a 58% increase in industrial output, with state-owned enterprises comprising 90% of production capacity, enforcing mandatory targets across sectors like steel (aiming for 5.35 million tons annually by 1957) and coal.[5] By 1954, the Commission was subordinated to the newly formed State Council, solidifying its role in vertical command structures that extended planning directives to provincial and enterprise levels, often overriding market signals in favor of ideological and political priorities. Central planning under the Commission intensified during the Second Five-Year Plan (1958–1962), coinciding with the Great Leap Forward, where it coordinated mass mobilization for backyard furnaces and communal farming, resulting in output targets like 10.7 million tons of steel in 1958—far exceeding feasible capacities and contributing to economic disruptions.[6] Despite periodic decentralizations, such as those attempted in 1957–1958 to empower local authorities, the core mechanism remained top-down allocation, with the Commission controlling 80–90% of key investments and prices until the late 1970s.[7] This era entrenched the Commission's authority in a system prioritizing self-reliance and heavy industry over consumer goods, laying the administrative foundations later adapted into reform-era bodies.[4]Post-1978 Reforms and Reorganization
Following the Third Plenum of the Eleventh Central Committee of the Chinese Communist Party in December 1978, which initiated the policy of reform and opening up, the State Planning Commission (SPC)—the direct institutional predecessor to the National Development and Reform Commission—retained its core mandate for drafting national economic plans but adapted to emphasize indicative rather than mandatory targets in response to decollectivization in agriculture and incentives for state-owned enterprises.[8] This shift involved reducing centralized quotas for industrial output and allowing local governments and firms greater discretion in production decisions, though the SPC continued to control allocations of key resources like energy and raw materials through the remainder of the 1980s.[6] In May 1982, the State Council established the State Commission for Restructuring the Economic System (also known as the Economic System Reform Commission) as a dedicated body to oversee experimental reforms, including price deregulation and enterprise autonomy pilots, thereby separating systemic reform coordination from the SPC's operational planning duties.[6] Chaired initially by Deputy Premier Wan Li, this commission facilitated dual-track pricing mechanisms—whereby planned prices coexisted with market prices—and enterprise contracting systems, which devolved profit retention to managers while the SPC focused on macroeconomic balances.[8] These changes reflected a pragmatic evolution, as excessive decentralization risked inflation and shortages, prompting periodic recentralization of planning controls in 1988 and 1989.[6] The 1990s brought accelerated institutional streamlining amid the transition to a "socialist market economy" enshrined at the Fourteenth Party Congress in 1992. In March 1998, during Premier Zhu Rongji's comprehensive government reorganization, the SPC was renamed the State Development Planning Commission (SDPC), signaling a pivot from command-style planning to strategic development guidance, with reduced emphasis on annual quotas and greater integration of market signals in five-year plans. The SDPC absorbed some functions from the State Economic and Trade Commission, enhancing its oversight of foreign investment approvals and sectoral policies, while devolving routine approvals to lower levels to curb bureaucratic bottlenecks.[3] Culminating these adaptations, the National Development and Reform Commission (NDRC) was formally established on March 17, 2003, through the merger of the SDPC, the State Council Office for Restructuring the Economic System (successor to the 1982 reform commission), and select divisions from the State Economic and Trade Commission and Ministry of Foreign Trade and Economic Cooperation. [3] This consolidation, approved by the Tenth National People's Congress, centralized macroeconomic policy formulation, investment project vetting, and reform implementation under one entity reporting directly to the State Council, positioning the NDRC as a "super-ministry" with veto power over large-scale infrastructure and pricing decisions to support sustained growth amid WTO accession. The reorganization aimed to resolve fragmented authority that had hindered efficiency, though it preserved the agency's expansive scope, which critics later noted could stifle market competition.[3]Key Institutional Changes in the 2000s and 2010s
In March 2003, the National Development and Reform Commission (NDRC) was established through the reorganization of the State Development Planning Commission, incorporating functions from the State Council Office for Restructuring the Economic System and select responsibilities from the State Economic and Trade Commission, thereby expanding its scope to integrate macroeconomic planning with structural economic reforms.[3] This restructuring, approved by the 10th National People's Congress, positioned the NDRC as a "super-ministry" overseeing broad economic coordination across 28 ministries and agencies.[9] During the 2008 State Council administrative reforms, the NDRC's mandate was refocused on macroeconomic regulation and aggregate planning, with microeconomic interventions and routine project approvals largely delegated to line ministries and provincial governments to reduce administrative bottlenecks.[9] Concurrently, in response to the global financial crisis, the NDRC coordinated the RMB 4 trillion (approximately US$586 billion) stimulus package, temporarily centralizing oversight of major infrastructure and investment projects.[3] In the 2010s, administrative streamlining accelerated, with the NDRC delegating approval authority for numerous fixed-asset investment projects, including many foreign-invested initiatives exceeding RMB 300 million, to provincial NDRC branches and the Ministry of Commerce starting in 2010.[10] The November 2013 Third Plenum of the 18th Central Committee further curtailed the NDRC's influence by emphasizing the market's "decisive" role in resource allocation, reducing its pricing controls and project vetting powers while centralizing strategic decisions under new Party-led small groups.[3] Premier Li Keqiang's March 2013 commitment to eliminate about one-third of the approximately 1,700 administrative approval items directly targeted the NDRC's expansive gatekeeping role, promoting decentralization in operational approvals to foster efficiency.[3] These shifts marked a partial retreat from the NDRC's post-2003 dominance, aligning with broader efforts to mitigate over-centralization in planning.[9]Core Functions and Powers
Macroeconomic Coordination and Planning
The National Development and Reform Commission (NDRC) serves as China's primary agency for coordinating macroeconomic policies, formulating national economic and social development strategies, and ensuring balanced growth across sectors. It monitors economic aggregates such as GDP growth, inflation, employment, and trade balances, while adjusting policies to maintain stability and optimize resource allocation. This role stems from its mandate to integrate fiscal, monetary, and industrial policies under a unified framework, often described as providing strategic guidelines for the national economy.[1] Central to its planning function is the drafting and implementation of five-year plans, which outline medium-term objectives for economic restructuring, technological advancement, and social development. For instance, the NDRC led the formulation of the 14th Five-Year Plan (2021-2025), emphasizing innovation-driven growth and dual circulation strategies to bolster domestic markets amid external pressures. It is currently preparing the 15th Five-Year Plan (2026-2030), prioritizing "new quality productive forces" such as advanced manufacturing and self-reliant technologies to counter geopolitical challenges. These plans guide resource mobilization, setting quantitative targets like annual GDP growth rates and sectoral contributions, with the NDRC coordinating input from ministries and local governments.[11][12][13] In macroeconomic coordination, the NDRC analyzes trends and intervenes to prevent imbalances, such as overcapacity in certain industries or regional disparities. It convenes inter-ministerial mechanisms to align policies, for example, synchronizing monetary easing from the People's Bank of China with fiscal expansions during downturns. In 2024, amid sluggish post-pandemic recovery, the NDRC advocated expanding policy space through market-oriented tools like targeted subsidies and infrastructure bonds, aiming to stabilize growth at around 5% while managing debt risks. This approach reflects a shift from rigid command planning to more flexible, data-driven adjustments, though state control remains dominant in strategic sectors.[14][15][13] The agency's planning extends to long-range visions, such as the 2035 objectives integrated into recent five-year frameworks, focusing on high-quality development metrics like total factor productivity and environmental sustainability. Performance is tracked via annual reports submitted to the National People's Congress, where the NDRC assesses plan fulfillment—for the 14th Plan, it reported progress in rural revitalization and green transitions but highlighted needs for consumption boosts. Critics from international observers note that while effective in rapid mobilization, this top-down coordination can distort markets through administrative quotas, leading to inefficiencies like excess investment in state-favored projects. Nonetheless, empirical outcomes, such as China's sustained GDP expansion averaging over 6% in the 2010s, underscore the system's capacity for scale-oriented coordination.[16][11]Investment Project Approvals and Oversight
The National Development and Reform Commission (NDRC) exercises central authority over the approval of major fixed-asset investment projects in China, focusing on those that support national economic strategies, utilize public funds, or span restricted sectors such as infrastructure, energy, and resources.[17] It formulates and maintains the catalog delineating projects subject to government approval, while coordinating with sectoral ministries to review feasibility, environmental impact, and alignment with macroeconomic plans.[1] This role stems from the NDRC's mandate to manage the overall scale of societal fixed-asset investments and establish structural adjustment targets, preventing overcapacity and directing resources toward priority areas.[1] Pursuant to the 2004 State Council Decision on Reforming the Investment System, the NDRC transitioned from comprehensive pre-approval of all projects to a framework emphasizing enterprise autonomy, wherein investors prepare feasibility studies and local development and reform commissions handle routine approvals, escalating strategic or high-value cases to the central NDRC.[18] The NDRC's Department of Fixed Asset Investment specifically reviews major projects, recommends approvals for government-financed initiatives, and optimizes central investment allocations toward urgent infrastructure and development tasks.[19] Reforms under this system have included delegating powers to lower levels, implementing negative lists for market access, and streamlining procedures to foster private investment, including through public-private partnerships (PPPs) with targeted policy support.[19] For foreign-invested projects involving fixed assets, approvals or filings depend on sector and scale, with the NDRC assessing national security and economic fit before proceeding to other clearances.[20] Oversight extends across the project lifecycle, encompassing post-approval monitoring, performance audits, and adjustments to ensure compliance with approved plans and evolving priorities.[16] The NDRC intensifies scrutiny over central budgetary investments, verifying fund usage and outcomes, while coordinating macroeconomic responses to investment trends.[17] In practice, this has involved approving batches of strategic projects; for instance, in April 2025, the NDRC greenlit eight fixed-asset initiatives valued at 377.1 billion yuan, contributing to a first-quarter total of 573.7 billion yuan amid efforts to stabilize growth.[21] For outbound investments, the NDRC applies differentiated procedures: sensitive projects or non-sensitive ones exceeding 300 million USD require prior approval to verify policy compliance and risk, while smaller non-sensitive cases undergo filing with subsequent reporting on implementation.[22] This mechanism, refined in 2017 measures, prohibits investments in diplomatically isolated regions or unstable zones, reinforcing national oversight amid global expansion.[23]Price Setting, Resource Allocation, and Sectoral Regulation
The National Development and Reform Commission (NDRC) exercises authority over price setting through its Department of Price, which monitors and forecasts price fluctuations, establishes control targets, and formulates policy recommendations to stabilize markets.[24] This department promotes reforms toward market-determined pricing while retaining government intervention for essential commodities and services, such as electricity tariffs, natural gas, and public utilities, where it directly sets or approves rates to balance supply-demand dynamics and prevent volatility.[1] For instance, in refining electricity pricing mechanisms, the NDRC advanced market-based reforms for on-grid power from renewable sources and improved source-side pricing as outlined in its 2025 report to the National People's Congress.[16] Recent actions include issuing measures in October 2025 to curb disorderly low-price competition through cost investigations and inspections, targeting sectors prone to predatory pricing.[25] Additionally, a draft revision to the Price Law in July 2025 clarified criteria for low-price dumping, defining it as sustained sales below production costs to enhance regulatory enforcement.[26] In resource allocation, the NDRC coordinates national strategies to ensure efficient distribution of factors like land, labor, capital, and environmental resources, emphasizing a transition to market-driven mechanisms while maintaining oversight for strategic priorities.[1] It promotes unified frameworks for quota allocation and trading, as evidenced by initiatives in June 2025 to accelerate reforms in resource and environmental factor markets, including carbon emissions and water rights trading to optimize efficiency.[27] Earlier efforts, such as the January 2022 guidelines, focused on market-based allocation of production factors to support unified national markets and reduce administrative barriers.[28] The 2024 NDRC report underscored the market's decisive role in resource allocation, with government interventions limited to correcting market failures in critical areas like energy and infrastructure.[29] For sectoral regulation, the NDRC formulates and enforces policies in key industries, including energy and telecommunications, to align development with macroeconomic goals. In the energy sector, it oversees power market operations, issuing rules effective July 2024 that define market participants, transaction types, and penalties for non-compliance to foster competition while ensuring supply security.[30] It also shapes energy pricing and industrial policies, such as those promoting high-tech industrialization and renewable integration.[31] In telecommunications, the NDRC collaborates with the Ministry of Industry and Information Technology to regulate base transceiver station (BTS) prices and interconnection charges, managing spectrum and infrastructure costs to support network expansion.[32] These regulatory functions extend to monitoring sectoral imbalances, with interventions like price controls on natural gas to mitigate supply chain costs, as analyzed in studies showing potential system-wide savings from targeted deregulation.[33] Overall, NDRC's approach prioritizes state-guided reforms to enhance competitiveness without fully relinquishing control in strategic domains.[1]Organizational Framework
Internal Bureaus and Specialized Departments
The National Development and Reform Commission (NDRC) maintains an internal organizational structure comprising 26 functional departments, bureaus, and offices that execute its responsibilities in macroeconomic coordination, planning, investment oversight, and sectoral policy. These units, as delineated in official State Council regulations, include general administrative bodies, policy research offices, and specialized divisions focused on economic operations, reforms, investments, regional strategies, and industry-specific regulations.[34] The structure emphasizes centralized control over key economic levers, with departments often coordinating across sectors to align with national five-year plans and development goals. Key internal bureaus and departments encompass:- General Office (办公厅): Serves as the central hub for administrative coordination, document handling, and operational support across NDRC activities.[35]
- Policy Research Office (政研室): Drafts major policy documents, conducts research on critical economic and social issues, and supports strategic decision-making.[36]
- Department of Development Planning (规划司): Formulates national economic and social development strategies, medium- and long-term plans, and annual targets, while coordinating unified planning systems.[35]
- Department of National Economy (综合司): Oversees macroeconomic analysis, comprehensive economic policies, and coordination of major national economic affairs.[35]
- Bureau of Economic Operations Adjustment (运行局): Monitors economic performance, adjusts operations to stabilize growth, and addresses short-term imbalances in supply and demand.[35]
- Department of System Reform (体改司): Coordinates economic structural reforms, promotes opening-up policies, and guides institutional changes to enhance market mechanisms.[36]
- Department of Fixed Assets Investment (投资司): Reviews and approves major investment projects, regulates fixed asset investments, and ensures alignment with national priorities.[37]
- Bureau of Private Economy (民营局): Promotes development of private enterprises, coordinates policies for non-public sector growth, and facilitates private investment in strategic areas.[37]
- Department of Foreign Capital and Foreign Trade (外资司): Manages foreign investment approvals, guides utilization of foreign capital, and coordinates trade-related economic policies.[37]
- Regional Economy Department (区域司): Develops and implements regional development plans, coordinates inter-regional economic strategies, and addresses disparities across provinces.[37]
Affiliated Institutions and Advisory Bodies
The National Development and Reform Commission (NDRC) oversees several directly affiliated public institutions that provide specialized research, information management, and policy support functions. These include the Academy of Macroeconomic Research, which conducts studies on national economic trends, development strategies, and reform policies to inform NDRC decision-making.[39] The National Information Center, established as a public institution under NDRC, manages the national e-government extranet, processes economic and social data, and supports information systems for policy formulation and implementation.[40] Additionally, the Xi Jinping Economic Thought Research Center focuses on theoretical research and dissemination of economic policies aligned with central leadership directives.[39] Other affiliated entities encompass sector-specific research arms, such as the Energy Research Institute, which analyzes energy policy, supply security, and sustainable development strategies under NDRC guidance.[41] These institutions operate as non-profit public units, funded primarily through government budgets, and contribute to NDRC's macroeconomic coordination by producing reports and forecasts used in five-year plans and annual adjustments.[36] For advisory functions, NDRC maintains a system of external consulting mechanisms, particularly for investment project evaluations. Under regulations like the Government Investment Ordinance, NDRC selects qualified institutions via public tendering to provide expert assessments on project feasibility, risks, and compliance across sectors such as agriculture, infrastructure, and energy.[42] As of 2022, this included 37 firms for 19 professional categories, with examples like China International Engineering Consulting Co. Ltd. for agricultural and forestry projects, and China Hydropower and Hydroelectric Engineering Consulting Group Co. Ltd. for water resources.[43] These advisory bodies are not permanently affiliated but are delegated tasks on a project basis, with NDRC covering fees to ensure scientific decision-making while mitigating biases in self-assessment by project proponents.[44] This framework, revised periodically, emphasizes independence and expertise, though selections prioritize state-aligned entities capable of aligning with national priorities.[45]Subordinate Enterprises and Social Organizations
The National Development and Reform Commission (NDRC) oversees a limited number of directly affiliated public institutions, primarily research and information centers that provide analytical support for macroeconomic policy formulation, data processing, and ideological studies, rather than commercial enterprises. These units operate as state public service institutions (事业单位) under the NDRC's administrative guidance, focusing on advisory roles aligned with national economic planning objectives. Unlike sector-specific ministries that manage state-owned enterprises (SOEs), the NDRC does not directly control profit-oriented subordinate enterprises; its influence over SOEs occurs indirectly through investment approvals and sectoral regulations.[39] Key affiliated institutions include the Academy of Macroeconomic Research (宏观经济研究院), established to conduct studies on national economic trends, development strategies, and international economics, producing reports that inform NDRC's five-year plans and reform policies. This institute, with roots tracing to the 1980s State Planning Commission era, employs economists to model growth scenarios and evaluate policy impacts, such as resource allocation efficiencies.[39] The State Information Center (国家信息中心), also directly subordinate, manages national economic databases, e-government networks, and big data analytics for development planning, including the administration of the National E-Government Extranet since its inception in 1986 to support information-driven decision-making. It processes real-time economic indicators and facilitates inter-agency data sharing, contributing to NDRC's oversight of investment projects and resource distribution.[39][40] Additionally, the Xi Jinping Economic Thought Research Center (习近平经济思想研究中心), established more recently to systematize and propagate economic principles associated with China's leadership, conducts theoretical research on high-quality development, common prosperity, and dual circulation strategies, directly aiding NDRC's alignment of plans with central directives as of 2023. These centers collectively enhance the NDRC's capacity for evidence-based policymaking but have faced critiques for potential prioritization of political conformity over independent empirical analysis in their outputs.[39] Regarding social organizations, the NDRC does not maintain a broad portfolio of registered non-governmental entities; instead, its affiliated units function within the state apparatus, with limited external societal engagement beyond policy dissemination. No verifiable records indicate direct subordination of independent social groups or NGOs, reflecting the centralized structure where such bodies require government sponsorship for registration and operations in China.[39]Leadership and Governance
Directors and Ministerial Leadership
The National Development and Reform Commission (NDRC) is led by a Chairman, equivalent to a minister in rank, who directs the agency's macroeconomic planning, investment oversight, and policy coordination functions under the State Council. The Chairman is appointed by the Premier and confirmed by the Standing Committee of the National People's Congress, typically serving terms aligned with National Congress sessions, and is concurrently the Secretary of the NDRC's Leading Party Members' Group, ensuring alignment with Chinese Communist Party directives.[1]| Name | Term | Key Notes |
|---|---|---|
| Ma Kai | March 2003 – March 2008 | Oversaw initial integration of predecessor agencies including the State Planning Commission; focused on sustaining post-WTO economic growth amid global integration.[46][47] |
| Zhang Ping | March 2008 – March 2013 | Emphasized urbanization and domestic demand expansion during the global financial crisis response; coordinated stimulus measures totaling 4 trillion yuan in 2008.[3][48] |
| Xu Shaoshi | March 2013 – February 2017 | Prioritized structural reforms under the 12th Five-Year Plan, including capacity cuts in overcapacity sectors like steel and coal; advanced Belt and Road Initiative planning.[49][50] |
| He Lifeng | February 2017 – March 2023 | Directed supply-side reforms and high-quality development strategies; key role in dual circulation economic paradigm amid U.S.-China trade tensions.[50][51] |
| Zheng Shanjie | March 2023 – present | Focuses on stabilizing growth post-COVID, expanding domestic demand, and advancing new productive forces; coordinated 2024 economic targets including 5% GDP growth aim.[52][53][16] |