The State Council, China's cabinet, recently decided to establish the National Energy Commission in a move to strengthen strategic policy-making and energy coordination. The commission will be headed by Premier Wen Jiabao, with Vice Premier Li Keqiang acting as deputy head.

Major obligations of the commission will include research and formulation of national energy development strategies, as well reviewing major issues concerning the country's energy security and development.

The commission will also be in charge of making plans for the coordination of domestic energy development as well as expanding international cooperation. It will also be the highest office in charge of China's energy issues.

The new commission will be made up of 21 members, mostly senior officials from a number of ministries and the central bank, as well as other government departments.

The establishment of the commission shows the government's commitment and recognition of importance of the national energy strategies, which are key to the country's economic and social development.

Most importantly, the move is believed to strengthen the decision-making powers of the government in regard to energy issues. The already-existing National Energy Bureau under the National Development and Reform Commission is reportedly having difficulty making a unified energy policy and lacks the ability to better regulate the country's sophisticated energy industries.

Liu Shangxi, Deputy Director of the Research Institute for Fiscal Science under the Ministry of Finance, said the commission represents a great stride toward restructuring China's energy management systems and will help push forward the development of energy businesses.