ZCZC
BCN-20
CHINA-ECONOMY-REFORM-FREE-TRADE-ZONE
China’s reform of decoupling business licenses and operation permits to be
fully implemented in pilot free trade zones
BEIJING, Aug. 22, 2019 (BSS/Xinhua) – China will fully roll out the reform
of decoupling business licenses and operation permits in its pilot free trade
zones nationwide starting from December 1, reducing the permitting
requirements and simplifying the reviewing processes under all the 523 items
concerning business operation subject to central government approval, in an
effort to create a world-class, market-oriented business environment governed
by a sound legal framework, and promote employment, the State Council’s
executive meeting chaired by Premier Li Keqiang decided on Wednesday.
“The reform of decoupling business licenses and operation permits is an
important step in transforming government functions and improving the
business environment. This ever-deepening reform in recent years has played a
crucial role in energizing the market, unlocking people’s creativity, and
tackling the downward economic pressure in a shifting external environment,”
Li said.
The reform of decoupling business licenses and operation permits, building
on the reform of the business system, is an important measure in seeing that
companies take ownership in their operation decisions and the government live
up to its responsibility of compliance oversight.
Since the State Council made the decision in 2015, the reform, first
piloted in the Pudong New Area in Shanghai, has been rolled out across the
country. This effort has effectively improved the business environment and
boosted market vitality. Between November 2018 and June 2019, as many as
2.942 million companies benefited from the reform.
The Wednesday meeting decided that the reform of decoupling business
licenses and operation permits will be pushed forward in all pilot free trade
zones starting from December 1, to reduce the permitting requirements and
simplify the reviewing processes. New measures will be introduced under all
the 523 items concerning business operation that are subject to central
government approval:
The reviewing requirement of 13 items, including record-filing and
registration by foreign trade operators, will be abolished.
The reviewing requirement of 8 items, including registration of custom
broker corporations, will be replaced by record-filing.
The reviewing requirement of 60 items, including human resources services
permits, will be replaced by pre-commitment of compliance.
For the remaining 442 items, services will be improved by cutting
documentation requirement, providing faster, online processing, extending or
scrapping validity period and abolishing on-site verification.
All the above-mentioned measures will be included in the all-front reform
list, released to the public and adjusted in due course.
“Our market entry threshold is still quite high. Companies with business
licenses yet without required permits cannot actually operate, and permit
requirements still abound. These are the reasons why firms may be up yet not
actually running,” Li said.
“This round of reform in the pilot free trade zones is only the first
step. Going forward, we will pursue the reform at a faster pace and expand
its coverage. The goal is to level the playing field and create a world-
class, market-oriented and more enabling business environment governed by a
sound legal framework where all types of market actors are treated as equals.
The delegation of government powers must help ensure fairness,” Li said.
It was decided at the meeting that implementation of relevant
administrative regulations and State Council decisions in the free trade
zones will be temporarily adjusted. The State Council will seek mandate from
the Standing Committee of the National People’s Congress for any adjustment
in enforcing the laws concerned.
“The government must strengthen impartial regulation and intensify
compliance oversight and keep reforming and innovating the regulatory means
to provide safeguards for the reform. Government oversight should run in sync
with and be part and parcel of government services,” Li said.
BSS/XINHUA/HR/1455