How China Works

China is a single-party state where the Communist Party sits above and directs all government, military, and judicial bodies. There is no separation of powers in the Western sense.

This is fundamentally different from Canada and other Western democracies. In Canada, the Prime Minister is constrained by Parliament, courts, and an independent press. In China, government ministries, provincial leaders, and military commanders all answer ultimately to party structures, not to the public through elections.

Understanding this dual structure — party sitting above and interpenetrating the state — is the single most important foundation for interpreting China's diplomatic signals, trade decisions, military postures, or the actions of Chinese state-linked companies operating in Canada.

The CCP is the most powerful institution in China. Power concentrates sharply at the top of a pyramid — from 98 million members at the base to a single General Secretary at the apex.

At the apex sits the General Secretary (Xi Jinping since 2012) — the most powerful person in China. This title matters more than the presidency, which is largely ceremonial. Xi also holds the titles of President and Chairman of the Central Military Commission, consolidating all three pillars of power. This level of concentration has not been seen since Mao Zedong.

The party controls all major personnel appointments through its Organization Department, managing the careers of roughly 70 million cadres. Promotion depends on party loyalty, factional connections, and — under Xi — demonstrated personal allegiance to the top leader.

The State Council is China's cabinet — it implements party decisions through ministries. It does not set national direction; that comes from the party.

Under Xi, the State Council's autonomy has diminished significantly. The Premier today operates with considerably less latitude than predecessors like Zhu Rongji or Wen Jiabao. Policy direction comes from the PSC, from Leading Small Groups chaired by Xi, and from the Central Committee's plenary sessions.

China has a legislature, but it legitimizes rather than legislates. The NPC ratifies decisions already made by the party; the CPPCC is an advisory body with no legislative power.

The NPC Standing Committee has been the vehicle for significant legislation including Hong Kong's national security law and revisions to China's espionage and data security laws — all with direct implications for Canadians operating in or with China.

The CPPCC's primary function is united front work — bringing non-CCP elites into the fold and channelling their advice to the party. Some CPPCC members have roles connecting mainland China with diaspora communities worldwide, making it relevant to Canada's foreign interference debate.

Every level of government has a corresponding party structure that sits above it and controls it. The party secretary outranks the government head at every level.

Under Xi Jinping, the party side has been dramatically strengthened through party-led Leading Small Groups (now often called "commissions") that directly oversee policy areas previously managed by the government. Once the party makes a decision, the entire state apparatus moves in lockstep to implement it.

China's vast administrative geography is centrally controlled — leaders are appointed, not elected — but local implementation can diverge significantly from central policy.

Provincial and local leaders are appointed by the center. The party's Organization Department manages a vast cadre rotation system, regularly moving leaders between provinces and central roles. This ensures loyalty to Beijing but means local leaders sometimes lack deep knowledge of the regions they govern.

Despite centralized appointment, local implementation can diverge significantly — captured in the phrase "the mountains are high and the emperor is far away" (山高皇帝远). A trade policy imposed by Beijing may be enthusiastically enforced in one province and quietly softened in another, depending on local economic realities. For Canadians doing business in China, conditions can vary dramatically from city to city.

The PLA is the armed wing of the Communist Party, not a national army. It exists to defend the party. The CMC reports to the party, not to the government.

As Mao Zedong declared: "The party commands the gun; the gun must never command the party." Xi has waged a massive anti-corruption campaign within the PLA, simultaneously improving readiness and ensuring personal loyalty.

These institutions appear repeatedly in Canada-China news. Understanding what each does — and does not do — is essential for accurate analysis.

MFA — Ministry of Foreign Affairs (外交部)

China's primary diplomatic interface. Since ~2019, the MFA has adopted "wolf warrior diplomacy" — combative language and social media pushback. However, the MFA is a messenger, not a policymaker. It communicates positions decided by party leadership and is considered relatively weak within China's bureaucratic hierarchy.

MOFCOM — Ministry of Commerce (商务部)

Handles trade policy, tariff decisions, foreign investment review, and trade remedies. MOFCOM administered restrictions on Canadian canola imports in 2019 and manages ongoing trade friction. Also oversees China's "unreliable entities list."

UFWD — United Front Work Department (统战部)

Manages the party's relationships with non-CCP groups domestically and overseas: diaspora communities, business elites, religious organizations. Central to Canada's foreign interference debate, with multiple reports identifying united front-linked organizations operating in Canadian cities.

MSS — Ministry of State Security (国安部)

China's primary intelligence agency, combining functions split in Canada between CSIS and the RCMP. Conducts espionage, counterintelligence, and cyber operations. Has been implicated in operations targeting Canadian political figures and technology companies.

NDRC — National Development and Reform Commission (发改委)

China's powerful economic planning body, sometimes called a "mini State Council." Sets industrial policy, manages price controls, approves major projects, and coordinates Five-Year Plans. Shapes China's demand for natural resources and technology self-sufficiency drive.

Taiwan Affairs Office (国台办)

Manages policy toward Taiwan. A military conflict over Taiwan would directly affect Canada through alliance commitments, economic exposure, and disruption of global semiconductor supply chains.

The most consequential decisions are made behind closed doors within party structures. China watchers read signals — state media language, personnel changes, institutional statements, timing — to anticipate policy.

1. Party Deliberation

   Issue identified within party bodies. Major issues begin at the General Secretary / PSC level.

2. Leading Small Groups

   Powerful coordination bodies, often chaired by Xi, bring together party and government officials across agencies.

3. Politburo / PSC Approval

   Major decisions discussed and approved at Politburo (monthly) or PSC (regular) level. Decisions carry highest authority.

4. State Council Translation

   Party decisions translated into regulations, budgets, and directives to ministries.

5. Ministry & Local Execution

   Individual ministries and provincial governments execute policy. The gap between central intent and local reality can be wide.

Reading the signals