Streamlining administration and delegating powers to lower-level governments are a huge transformation of governmental functions, which is revolutionary in its nature.
The success of this reform will bring many more benefits to the public and enterprises and energize the market.
As the reform deepens, government departments become more efficient.
People previously had to visit different government departments, for different stamps, before finally getting approval. The process is now much quicker.
Two years ago it used to take an average of 25.59 days to get approval to establish a company, according to the State Administration of Industry and Commerce. Following commercial reform, this time frame has been slashed to 14.29 days. And once the “one certificate and one code” is implemented it will be further shortened to five days.
Apart from boosting efficiency, streamlining and delegating will also reduce costs for people and enterprises.
In some provinces it could cost tens of millions of yuan to get an Organization Code Certificate, the “ID card” for a company and other organizations. The reform saw this procedure canceled.
Streamlining and delegating will also help regulate the government’s role in the market and cultivate a fair business environment, which creates a more dynamic market.
Jilin province has witnessed a rapid increase in newly registered enterprises with a 248.4 percent year-on-year growth of registered capital in March.
The National Development and Reform Commission said project management of overseas investments had been reformed, which stimulated a wave of overseas investment from July 2014 to March 2015. This resulted in a 75 percent year-on-year growth in overseas projects, each of which was valued at more than $100 million. The investment amounted to $93.6 billion, which represented year-on-year growth of 20 percent.
Reform also creates a better environment for industries like “Internet plus” and new energy.