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Premier Li urges improving regulation while cutting red tape

Updated: Jan 14,2016 10:50 AM

Premier Li Keqiang urged further improving regulation while streamlining administration at an executive meeting of the State Council on Jan 13.

“To really establish a fair and just market order, we must depend on regulation of the market rather than government review,” he said.

According to data revealed at the meeting, if hygiene licenses for public places were abolished, a large catering corporation would be able to avoid a whopping economic loss of 73 million yuan ($11.10 million) each year, caused by delays in business opening or training due to license application or upgrading.

To improve food safety, the meeting announced integrating hygiene licenses and food business operation licenses for four types of public catering places: restaurants, cafes, bars and tea houses. It also agreed to abolish government regulations for 61 more professional qualification certificates.

The Premier stressed that abolishing a license is not simply to delegate power to lower levels, but is an important measure to improve regulation efficiency.

“At first, some people were worried that streamlining administration and delegating power to lower levels might lead to disorder. However, it is found that the market has not become disorderly,” said Premier Li. “The key is to strengthen regulation.”

The meeting decided to cancel 150 more approval items, remove 10 more departmental administrative licenses constraining innovation and entrepreneurship, and abolish or standardize 192 more intermediary service items.

It also pledged to amend related laws and regulations to provide legal support for the reform.

According to the Premier, the unemployment rate in 31 large cities in December 2015 dropped to the lowest level in recent years, and the growth rate of people’s income continues to surpass the GDP growth rate.

“Practice has proved that market vitality has indeed been boosted,” said Premier Li.

He stressed that the policies of streamlining administration and delegating power to lower levels while improving regulation and optimizing services should be regarded as the new engines for economic development.