China will further regulate the formation and management of administrative discretion to better protect the legitimate rights and interests of market entities and the general public, safeguard a fair and competitive market order, and stabilize market expectations.

According to a circular released by the General Office of the State Council on Aug 17, a basic system of administrative discretion will be established by the end of 2023, to ensure its standards with regulated enforcement and scientific management.

To strictly manage the formation of administrative discretion, administrative bodies are not allowed to increase obligations of administrative counterparts or compromise their rights and interests without legal or rule bases.

Administrative penalties will be properly implemented to avoid insufficient or excessive punishment, the circular said.

Meanwhile, administrative approvals will become more convenient and efficient, as unfair clauses such as additional conditions, links, proof materials, and discriminatory and geographically restricted stipulations will be banned.

The rights, procedures, and time limits on administrative discretion of administrative bodies at different levels should be clarified.

The circular also stressed fair and reasonable administrative expropriation to respect the property rights of administrative counterparts with detailed standards, procedures, and authority limits.