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Premier Li presses for optimized market withdrawal policies

Updated: Feb 05,2021 06:52 AM

Premier Li Keqiang stressed greater efforts to help enterprises inefficient withdrawal from the market - especially micro, small, and medium-sized firms   - to beef up vitality of market entities at an executive meeting of the State Council on Feb 3.

Through deepened reform of administration streamlining, powers delegation, and optimized business environment, China's market entities have increasingly strengthened their vitality in recent years, with their total number exceeding 130 million, according to Premier Li.

"However, against the backdrop of the market-oriented economy, it is common for the survival of the fittest and elimination of the inferior, resulting in the bankruptcy of some enterprises," he said, urging for accelerated efforts in improving market withdrawal policies which will be conducive to a level playing field in the market.

Simple exit mechanisms for micro, small, and medium-sized enterprises should be advanced to facilitate an optimized structure of market entities, the Premier said.

An announcement system for enterprises' status in bankruptcy and withdrawal should be established, and related information should be included in their credit information accessible to public inquiry. This will promote the credit mechanism construction and facilitate fair competition.

Bankruptcy processes should move in accordance with laws and regulations, the Premier added, calling for enhancement of the bankruptcy trustee system with creditor committees and bondholder communities coordinating to protect legal rights of workers, creditors, and investors. Debt evasion occurring in the process should also be targeted.