New policies aim to foster a fairer market
A worker checks the operation of a carbon fiber production line at a factory in Lianyungang, Jiangsu Province. (Photo by Geng Yuhe / for China Daily)
China will practice list-based management for all items requiring administrative approval, in order to regulate the exercise of power and provide more business benefits and more accessible services to the public, the executive meeting decided on Tuesday. of the State Council chaired by Premier Li Keqiang.
The meeting also decided to implement category management of corporate credit risks to make supervision fairer and more efficient.
“Both decisions are aimed at fostering an internationalized, law-based and market-oriented business environment, by continuing to deepen the reform of government functions and reduce transaction costs imposed by the government, which is of of great importance, “Li said.” They are also required by today’s urgent needs, as market expectations are now relatively low. “
The meeting adopted the list of items requiring administrative approval stipulated by laws, administrative regulations and decisions of the Council of State (2022 edition).
The meeting called on all provinces, cities and counties to complete the compilation of their own item lists by the end of the year. The essential information covered by the lists should be largely uniform across the country to ensure that the same approval item will be treated to the same standards in different regions.
No administrative approval will be required or implemented on any item outside of the lists.
âLower and predictable transaction costs imposed by the government will enhance public confidence in the market and better unleash market vitality and social creativity,â Li said. âDeploying these two policies now is made possible by the grassroots. asked in the past.
“We must rigorously apply list-based management and ensure that market participants are not disturbed by anything outside of the lists, so that they can compete on an equal footing in an open market environment and transparent, “he added.
In order to foster a market climate of honesty, good faith and fair competition, category management of corporate credit risks will be pursued in accordance with laws and regulations. Well-calibrated regulatory measures, including oversight through the random selection of inspectors and inspection targets and the prompt publication of results, will be adopted to ensure that regulations will pay the price for bad faith entities.
âCredit is the cornerstone of a market economy. Regulation will not stand in the way of honest businesses. Market entities in bad faith or with bad credit will face more and more frequent regulation and supervision. strict, âLi said.
The proportion and frequency of sampled inspections will be reduced for low risk businesses, while those with high risk or bad credit will face targeted and increased random checks and on-site inspections.