Chinese President Xi Jinping is planning the biggest reorganization of the government for years, to focus on "technological leadership," with about 5% of jobs set to be eliminated.
In the face of what he says is growing pressure from the US, the goal is to help Beijing get a head start in international competition.
"In the face of international tech competition and a severe situation of external containment pressures, we must further organize our technological leadership and management system," said an official document presented on Wednesday at the annual meeting of the People's Congress, a major Communist Party gathering.
Some 5% of jobs are to be eliminated in government - the largest number since a far-reaching restructuring in 1998.
A new financial supervision commission will be created to take over the previous functions of the central bank.
The Ministry of Science and Technology is also reorganized and a separate national authority is to be created to manage the increasing amounts of data available to government.
From China's perspective, the US and the West are seeking to impede the rise of the world's second-largest economic power with a "containment policy," Xi said on the sidelines of the People's Congress this week.
The restructuring will help focus on "strategic core technologies" and China "accelerate the achievement of high-level technological self-reliance," the document said.
Also on Wednesday, the Chinese government issued a warning to the US against a possible visit by Taiwanese President Tsai Ing-wen to Washington.
"China is very concerned about the information in question," Foreign Ministry spokeswoman Mao Ning told reporters, in response to media reports.
China had contacted Washington to ask for clarification, Mao said. According to a report in the Financial Times, Tsai plans to make a stop in California in April on her way to meet leaders in Central America.
China considers self-ruled Taiwan part of its territory, despite the island having an independent government since 1949.
