Premier Li Keqiang urged measures be taken to ease market access and further revitalize the market at the State Council’s executive meeting Aug 21.

The meeting decided that China will fully roll out the reform of decoupling business licenses from operation permits in its pilot free trade zones (FTZ) nationwide starting Dec 1, reducing permitting requirements and simplifying the review process under all 523 items concerning business operations subject to central government approval.

The reason to promote this reform is that there are too many permits and the procedures to get these permits are too complicated, the Premier explained.

Energize market entities, unleash people’s creativity

The reform of delegating power, improving regulation and optimizing services in recent years has played a crucial role in energizing the market, unlocking people’s creativity, and tackling downward economic pressure, Premier Li said.

However, many other permits, apart from business licenses, are still needed, which makes efforts to ease market access in vain, he added.

Currently, the reform of decoupling business licenses from operation permits should be fully rolled out in FTZs in advance, and then further promoted nationwide, the Premier noted.

He asked related authorities to level the playing field and create a world-class, market-oriented business environment governed by a sound legal framework. 

Permits not a way of seeking personal gain

In recent years, the time to get a business license has been largely reduced. However, there are still enterprises saying that a lot of permits are required after getting the business license, which not only increases business costs, but also leads to unfair competition in the market, even rent-seeking, Premier Li said.

Permits must never be used as a way of seeking departmental or personal interests, the Premier stressed, adding that the delegation of government powers must help ensure fairness.

As part of the decision made at the meeting, the review requirement of 13 items, including record filing and registration by foreign trade operators, will be abolished.

The review requirement of eight items, including registration of customs broker corporations, will be replaced by record filing.

The review requirement of 60 items, including human resource services permits, will be replaced by compliance precommitments.

For the remaining 442 items, services will be improved by cutting documentation requirements, providing faster online processing, extending or scrapping the validity period, and abolishing on-site verifications.

All these measures will be included in the reform list, released to the public and adjusted in due course.

It was decided at the meeting that implementation of related administrative regulations and State Council decisions in FTZs will be temporarily adjusted. The State Council will seek mandates from the Standing Committee of the National People's Congress for any adjustments in enforcing the laws concerned.

Combine management with services

The Premier stressed compliance oversight while pushing forward with reforms that delegate power, improve regulation and upgrade services. Delegating power does not mean standing idly by but changing the management mode, he said, adding that management should be combined with services.

Law enforcement should be regulated and impartial regulation strengthened to encourage positive interplay between the government and market entities, the Premier urged.

The reform of separating business licenses from operation permits should be promoted while considering the actual demands of the people and market players and ensuring their sense of gain, the Premier added.