China will make further efforts in streamlining administration through more power delegation and fewer certifications and evaluation requirements. The country will soon issue its first guideline for market supervision and regulation to make its business environment more inviting.
The decision was announced during the State Council’s executive meeting on Jan 4 chaired by Premier Li Keqiang.
Local government will have delegated mandates in 53 administrative approval items, covering mainly business activities such as qualification certificate for private schools and business permit for cotton processing, providing more convenience in business registration. Among them, delegating 14 items needs to be further approved by the National People’s Congress Standing Committee because law amendments will be required.
Since 2013, a total of 230 administration items have been delegated to local governments.
Another 20 agency-provided evaluation and certificate requirements will also be dropped, including areas such as railway facility construction and qualification for legal professionals.
“Our reform in streamlining administration for leaner and more effective government now enters a crucial stage,” Premier Li said. “All departments should deliver in implementation, and make sure to drop institutional costs for enterprises.”
“The key in transforming government function is to strike a balance between the government and the market, and our goal is to effectively unleash and grow productivity potentials,” he added. “There is no end to it, and we will grasp the key link of reform to deliver results.”
It was also decided during the meeting that China will soon issue its first guideline for market supervision for a more open, better regulated and attractive business environment. The guideline will run through China’s 13th Five-Year Plan (2016-20).
The new guideline is geared toward a market environment offering easier market access, platform for fair competition, and greater consumer safety.
Among the measures that will be adopted are: further streamlining business registration, negative-list based market access with focus on compliance oversight; level playing ground for non-local businesses with fair competition and ban on discretionary subsidiaries, and highlight on regulation and enforcement of food and drug safety as well as other fields that are crucial to public safety and security. Plus, the government needs to improve in regulatory innovation through ways such as the Internet Plus strategy and big data.
“Supervision must be carried out in a lawful and well-regulated manner, so that companies won’t be subjected to extra burden,” Premier Li stressed.
He said that while the country is working hard to phase out excess industrial capacity, institutional hurdles should be reduced to allow room for new economic driving forces.
“We should work hard to advance transforming the role of the government,” Premier Li said. “A more dynamic market is a cornerstone for development.”