The State Council directly oversees provincial-level People's Governments, and in practice maintains membership with top levels of the Chinese Communist Party (CCP).

[2] Constitutionally, the main functions of the State Council are to formulate administrative measures, issue decisions and orders, and monitor their implementation; draft legislative bills for submission to the NPC or its Standing Committee; and prepare the economic plan and the state budget for deliberation and approval by the NPC.

[2] The State Council has flexibility in decision-making, especially with regard to economic matters, but the Politburo has ultimate authority.

The secretary-general heads the General Office which handles the day-to-day work of the State Council.

Commissions outrank ministries and set policies for and coordinate the related activities of different administrative organs.

The establishment, dissolution, or merger of the constituent departments are proposed by the premier and decided by the NPC or its Standing Committee.

In addition to the ministries, there are 38 centrally administered government organizations that report directly to the state council.