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China to strengthen efforts to regulate unlicensed business operations

Updated: Aug 23,2017 7:35 PM

The State Council has adopted regulations on investigating and punishing unlicensed business operations, according to a circular issued on Aug 23.

The rules, which will take effect on Oct 1, are aimed at safeguarding the market order and economic stability, promoting fair competition and protecting the legal rights of business owners and customers.

According to the regulations, no entity or individual should engage in illegal business operations in violation of laws, administrative regulations or the State Council’s decisions.

Local governments above county level should take on the responsibility to supervise and ensure related departments’ efficient implementation of these regulations in investigating and punishing unlicensed business operations.

Meanwhile, they were asked to establish a work mechanism that will enable related departments to strengthen their cooperation, interconnectivity and information sharing ability when performing their responsibilities, especially by using the internet platform.

The regulations also required that business owners engaging in business operations without first obtaining administrative approvals should receive penalties by government departments designated by laws, regulations or State Council decisions. And those who engage in business operations without obtaining business licenses will be punished by administrative departments for industry and commerce.

In addition, entities or individuals engaging in unlicensed business operations found during the investigation should be put on the credibility black list, which will be released to the public.