Intro to China’s Policymaking Process The creation and implementation of the National Five-Year Plan

Today we’ll cover: Who sets the policy agenda How policy is made How policies are changed How to influence policy in China

who sets the policy agenda 01 First things first: Check out the online version of this presentation at who sets the policy agenda

The Party sets the policy agenda. The Communist Party of China is the PRC’s only governing political party. The government is responsible for the day-to-day tasks of running the country, while the Party acts as a helmsman, guiding the government and safeguarding socialist ideology. The Party is controlled by a group of government bodies headed up by the Central Committee Politburo, which currently has 25 members. The 7 most senior members of the Politburo form the Standing Committee, Xi Jinping’s inner cabinet. The Party’s status relative to government has changed over the years.

02 how policy is made First things first: Check out the online version of this presentation at how policy is made

China’s core policymaking process takes place on a rolling, five-year cycle. It’s centered around China’s most important policy document: the National Five-Year Plan.

What is the National Five-Year Plan? The National FYP is China’s bucket list for the upcoming half-decade. It sets national targets, pinpoints key focus areas, and defines the national tone. Four primary types of policies are created to support the formulation and execution of the National Five-Year Plan: Opinions, Plans, Guidelines and Measures.

Party “Opinions” “Opinions” are like a teaser to the National Five-Year Plan Every fifth year, the Party Central Committee holds a plenary session to determine China’s key areas of focus for the next half-decade. The result is a strategic document typically called something like “Opinions on the formulation of the 13th Five-Year Plan. Opinions are vague and sweeping, lacking in specifics, painting a vision of China’s immediate future in broad, general terms.

Promote a low-carbon economy, increase innovation, and reduce poverty. Party Opinions are vague. They might promise that China will: Promote a low-carbon economy, increase innovation, and reduce poverty.

The NDRC & the National Five-Year Plan The group responsible for turning the Party’s goals into the National FYP is called the National Development and Reform Commission (NDRC). While drafting the National FYP, the NDRC gets input from many different stakeholders, including: Central government Local governments Think tanks Titans of industry Academic institutions The release of the National FYP is a highly-anticipated event nationally. National FYP is more specific than the opinions released by the Central Committee, but it’s still far from a detailed policy roadmap.

Move 55 million people out of poverty by 2020 National FYPs are a little more specific. The current FYP promises that China will: Move 55 million people out of poverty by 2020

Issue- and Industry-specific Five-Year Plans The National FYP is handed over to the ministries, who draft issue-specific five-year plans related to their areas of oversight. Issue-specific plans are further sub-divided into industry-specific five-year plans. These plans grow increasingly specific and detailed each time they’re sub-divided.

Five-Year Plan for Healthcare Five-Year Plan for Science & Tech Issue-specific Five-Year Plans might include: Five-Year Plan for Healthcare Five-Year Plan for Science & Tech Five-Year Plan for Environment Five-Year Plan for Poverty Alleviation

Five-Year Plan for Poverty: Water Projects The Five-Year Plan for Poverty Alleviation might be split into: Five-Year Plan for Poverty: Water Projects Five-Year Plan for Poverty: Education

Guidelines & Measures These two types of policies spell out step-by-step instructions for achieving goals set out in the FYPs. These policies represent the bottom rung of the policy cycle. Various government bodies carry out their day-to-day work by following the directives set out in guidelines and measures. Unlike five-year plans, which come with a built-in expiration date, guidelines and measures remain in effect until they’re overwritten by another policy sometime down the road.

how policies are changed 03 First things first: Check out the online version of this presentation at how policies are changed

There are three periods in a policy’s lifecycle during which it may undergo revision: while policies are being drafted, during promulgation periods, and during dedicated review periods.

Policy drafting periods As part of the drafting process of any plan, guideline or measure, the drafters at almost every level seek opinions and suggestions from a wide range of stakeholders, including other central government bodies, local governments, government think tanks, industry players, and academics.

Promulgation Periods Once a policy draft is completed, the releasing ministry may promulgate the draft and open up a brief window for public comment. During this window, anyone – from corporates to members of the public – can submit feedback on the policy. It will ultimately be up to the ministry which input will be taken under consideration and which will be ignored. Once the promulgation period is over, policies officially go into effect.

Review periods In the middle of a five-year plan’s effectiveness period, the plan undergoes review and revision. When it’s time to review a plan, the ministry responsible opens a bidding process, allowing academic institutions and industry groups to make proposals for conducting the review. The review involves research and feedback to see how effective a plan has been. Only plans have review periods – guidelines and measures don’t. Instead, outdated or ineffective guidelines and measures get overwritten by newer policies.

how to influence policy in china 04 First things first: Check out the online version of this presentation at how to influence policy in china

Get involved in research institutes and industry associations Chinese ministries often commission industry associations and research institutions to undertake relevant research and write policy drafts. Involvement in these groups may allow to set the tone of policies during their formulation period.

Take advantage of promulgation periods In the short window of time before policies are released, take some time to ensure that your opinion is heard.

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