Industrial products permit reform and green finance development are two topics highlighted at the State Council’s policy briefing on June 16.

Measures of industrial products permit reform

Li Yuanping, deputy head of General Administration of Quality Supervision, Inspection and Quarantine, briefed the measures in the industrial products permit reform in three aspects.

First, the catalogue of production permit is substantially adjusted with the pre-production permits for 19 kinds of products being abolished and the licensing power of eight kinds of products being delegated to local quality inspection departments.

Second, the national quality supervision watchdog is authorized to simplify approval procedures on trial basis for production permits in some areas and industries, including canceling product inspections before permits are issued.

Third, strengthen operational and post-operational oversight, by means of conducting random inspections to effectively guarantee product quality.

In explaining why the reform of production permit should be accelerated, Li said it is part of the government’s efforts in promoting the reform of streamlining administration. The reform on production permit system has always been a continued process since it was introduced in 1984, with number of categories of products that require official licensing reduced from 487 to the current 60.

He also said that at the teleconference held on streamlining administration on June 13, Premier Li Keqiang stressed focus on simplifying industrial product permit and laid out supervisory responsibilities. The national quality supervision watchdog will center on key points and prominent issues, striving to further advance the reform.

Li Yuanping also introduced measures to implement the reform policy. Follow-up supervision should be strengthened. Provincial government should ensure the effective handover of licensing power. Pilot reforms of simplifying approval procedure of products permit should be launched as soon as possible.

Innovation in green finance reform

Chen Yulu, deputy governor of the People’s Bank of China (PBOC), talked about pilot zones set up for green finance in Guangdong, Guizhou, Jiangxi and Zhejiang provinces as well as Xinjiang Uygur autonomous region that were approved at the State Council executive meeting on June 14.

The pilot regions, which are at different development stages and geographic locations, are expected to explore distinctive models of green finance.

Zhejiang will have to improve green finance services to upgrade traditional industries and boost overall green growth of small cities, whereas Guangdong will focus on developing a green financial market that highlights services such as trade in environmental rights and interests, and carbon financial products.

Guizhou and Jiangxi, as relatively less developed regions, are endowed with abundant natural resources. They will mainly support green projects in modern agriculture, energy saving, clean energy, and emerging industries such as big data.

Xinjiang Uygur autonomous region, which is at the core region of the Silk Road Economic Belt, is now in a critical period of opening up westward. Boosting green finance in the region will help set an example for countries and regions along the Belt and Road.

Challenges and tasks in developing green finance

Developing green finance is a global trend, which will not be reversed by the fact that the United States has withdrawn from the Paris Agreement.

China’s efforts in developing green finance, such as green bonds, will benefit the country’s export enterprises and even the international trade and investment.

The biggest issue of developing green finance is how to pursue sustainable development, and the key is to balance environmental and economic benefits.

The pilot zones should undertake multiple tasks. First, cutting financing costs by providing preferential financial and tax policies, refinancing from the central bank, and investment from green development funds; second, bolstering innovation in financial products and services; and third enhancing transparency of the green finance market.

Meanwhile, the central bank will strive to create a favorable environment for the reform.

It will guide financial institutions to invest more in green finance, attract more responsible investors and social capital, support innovation in green finance products and services, expand financing channels, step up improving related financial infrastructure, establish a risk prevention mechanism, and increase information disclosure to make sure that raised funds be used in green projects.