China will promote a mechanism of random inspections to regulate government supervisory activities, with the aim of ensuring a fair market environment and to “foster entrepreneurship among the masses”, the State Council General Office said in a circular issued on Aug 5.
The circular asks local governments and departments under the State Council to compile a list concerning random inspections and establish a “two-way random inspection” mechanism — which involves selecting both the targets of the inspections and the inspectors randomly.
Local governments and departments are also required to establish a “reasonable ratio and frequency” for the inspections, punish illegal behavior as a sort of deterrent, and make information concerning the results of the inspections available to the general public in a timely manner.
Additionally, the circular requires local governments and departments to carry out supervisory activities in accordance with the country’s laws and regulations, enhance equity and efficiency, promote transparency — and coordination among departments.
In order to facilitate the process, China will speed up the building of a unified market supervisory information platform, and the results of the random inspections will be linked to the social credit system, the circular said.
Local governments above the county level are required to coordinate relevant departments in order to jointly conduct random inspections, making it possible for different departments to carry out inspections of one market entity at the same time.
Local governments and departments under the State Council are expected to draft plans regarding the inspections. They are required to submit detailed lists of duties and timetables to the State Council’s coordination group for the government’s transformation of its functions — by the end of September 2015.