Xu Mingming, deputy director of the Office of the National Energy Leading Group, stated on March 2 that the draft of the "Energy Law" is set to be submitted to the State Council and eventually reported to the National People's Congress. This development indicates that the "Energy Law" will not be included in the current agenda of the ongoing "Two Sessions." Regarding the question of whether the Ministry of Energy will be established for the benefit of all sectors, the draft has not provided a clear statement. Xu also did not confirm whether the Ministry of Energy will be created or when it might be established.
Previously, there had been expectations that the highly debated "Energy Law" would be discussed during the "Two Sessions," which would have likely paved the way for the establishment of the Ministry of Energy. However, according to current developments, the creation of the Ministry may still take time. According to the draft, energy monopoly departments will be placed under legal supervision. Some ministries and large state-owned enterprises, however, are concerned about losing their power and interests, and have strongly opposed the establishment of the new ministry.
Currently, control over energy policy is divided between the National Development and Reform Commission and the State Energy Office under the State Council. The proposed Ministry of Energy could challenge the authority of the National Development and Reform Commission. Similarly, it would also threaten major players such as PetroChina, other oil companies, and the State Grid, which manages most of the country’s power transmission.
If approved, the new energy department would be part of broader administrative reforms. According to the plan, several ministries would be merged, and the environmental regulatory body would be elevated to ministerial level to increase its political influence. However, implementing these changes is proving difficult given the strong opposition from key stakeholders. As the policy-making process becomes increasingly influenced by majority opinions, resistance from powerful entities continues to pose a significant obstacle to reform.
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