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Cutting licensing red tape to boost manufacturing

Updated: Jun 17,2017 7:21 AM

The government will continue to overhaul manufacturing licensing and pay more attention to post-production review on industrial products after the State Council executive meeting chaired by Premier Li Keqiang on June 14.

The practice of production licensing was introduced in 1984 for quality supervision. Companies must obtain the license before their products go into production. After several rounds of reform, major categories of production license have been reduced from 487 to the current 60.

Nevertheless, red tape is still hindering the development of the real economy that takes the manufacturing as its pillar. There are still almost 1,000 types of licenses under the 60 categories, and many government departments are issuing redundant licenses, Premier Li said at the meeting.

In a new round of global industrial revolution, China is witnessing entrepreneurship and innovation booming, with 13,000 new enterprises registered every day. In this context, the licensing red tape will hinder the development of new products, and impose burdens on enterprises and society.

Premier Li has thus reiterated the importance of cutting licensing red tape for industries, and made several deployments within first six months of this year. Also, at the teleconference held on streamlining administration on June 13, the Premier called for further reducing half of industrial products permits this year.

Instead of pre-production permits, operational and post-operational oversight will be stressed in the reform. Random inspections will be carried out among all products that no longer require licensing. Licenses will be revoked if enterprises fail to pass follow-up inspections.

Only when the system that constraints business development is relaxed, can the vitality of enterprises be unleashed.

Cutting licensing red tape and delegating power to lower level does not mean the reduction of government responsibility, the Premier stressed at the executive meeting. On the contrary, the government must shoulder more while easing the burden for enterprises.