Chinese authorities have laid out a set of new plans to sever the link between governments and trade associations.

The move is expected to give more independence to trade associations.

Under the new plans, active civil servants in China will not be employed as heads of national trade associations.

And no ranks of administrative title will be given to the heads of national trade associations.

The plans also say that heads of national trade associations should serve a maximum term of five years with no more than two consecutive terms.

Professor Wang Conghu with the School of Public Administration and Policy at Renmin University says the move will help improve the management of trade associations.

"Heads of national trade associations are to be selected based on their expertise in relevant industries in line with the internal governance procedures of the associations. There will be no more direct appointment from government departments in the future. So this is likely to be a big change."

The number of trade associations in China now stands at 70-thousand, compared with less than 1-thousand in late 1970s, covering almost all sectors of the national economy.

However, some of these trade organizations are over-staffed and run by retired government officials, who act more like semi-official government regulators than organizers and leaders of industry.

Zhu Lijia, professor with the Public Administration Department at Chinese Academy of Governance says reforms are needed to remedy the situation.

"Trade associations are set to realize socialized and market-oriented development. It's an in-evitable trend to disconnect them with administrative authorities. After the disconnection, they need to carry out further structural reforms and better serve the society and the market."

After the disconnection, the government is expected to take on a new role of coordinating the relationship between associations, enterprises and the market.

Mao Shoulong, with the Academy of Public Policy at Renmin University suggests the government enhance management through related laws and regulations:

"The government needs to manage the trade organizations with a lawful approach. Governments and trade associations are equals instead of superior and subordinate. "

The new plans come after the State Council, China's cabinet, released a circular on government-linked trade associations in July, aiming to distribute power and duties and empower industries to regulate themselves.

A pilot program has been set up and will expand to cover more organizations in the coming years.

It's estimated that after full implementation of the plans, tens of thousands of government officials, including over one hundred ministerial-level officials will have to resign from trade associations.

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