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China to further cut red tape

Updated: Jan 13,2016 9:29 PM

Premier Li Keqiang presided over an executive meeting discussing issues of simplifying administration, delegating powers and lowering the threshold for enterprises to be recognized as high and new technology ones on Jan 13.

The meeting decided to further simplify administration and delegate powers to the lower levels, easing burdens of enterprises and clearing barriers hampering mass innovation and entrepreneurship.

The meeting announced the cancellation of 150 more approval items, including on taxation and departmental pre-approval on local enterprises’ issuing bonds; the removal of 10 more departmental administrative licenses constraining mass innovation and entrepreneurship; and the abolition or standardization of 192 more intermediary services items.

It also agreed to integrate hygiene licenses and food business operation licenses of four public catering places of restaurants, cafe shops, bars and tea houses to perfect food safety guaranteeing mechanisms and abolish government regulations for 61 more professional qualification certificates.

To provide law support for reform, the government will publish approval reform results and revise related laws and regulations to push enterprises to develop and innovate.

The meeting also decided to revise the regulation on lowering the threshold for enterprises to be recognized as high-tech ones to give more support for medium and small enterprises.

It said an enterprise with no less than 10 percent of its staff working on research and development (R&D) as well as technological innovation can be regarded as a new and high tech one.

The new regulation reduces R&D funds for small enterprises to five percent from the earlier six percent and encourages enterprises’ independent research and development and technology transfer.

The new regulation will also simplify the defining processes and shorten the publicity time to improve the management of high and new tech enterprises; expand key support for certain technologies used in manufacturing, cultural innovation, e-commerce and modern logistics sectors and eliminate backward technologies to take advantage of policies to support tech innovation.