released November 14, 2020
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Premier: 'We must move quickly' on policies that are open, favor free trade
China will work harder this year for a more enabling business environment by tackling areas of weakness to better energize the market and stimulate social creativity, the State Council's executive meeting chaired by Premier Li Keqiang concluded on Tuesday.
Redoubled efforts to tackle pressing issues and measure up to advanced standards in fighting the tough battle of improving the business environment are needed, it was decided.
The government will further streamline administration by cutting procedural requirements, including shortening the negative list for market entry, decoupling business licenses and operating permits, simplifying the review process for construction projects and reducing the types of industrial production permits. The goal, before the end of this year, is to cut the time required for starting a business to five working days at most, and for companies to get electrical service within 45 working days.
"Governments at all levels must take improving the business climate as a key measure for stimulating market dynamism. Just as the tax and fee cuts are designed to lessen corporate burdens, improving the business climate is meant to serve the same purpose. In the face of fierce international competition, we must tackle all the areas of weakness in our business environment, such as access to credit and bankruptcy filing," Li said.
It was also urged at the meeting that relevant laws and regulations should be revised in line with the principle of competitive neutrality, and policies and measures that hamper the growth of private businesses or fail to treat domestic and foreign investors as equals should be overhauled.
A fair competition review system will be implemented in all governments including and above the county level before the end of this year. Under the system, all business-related policies will undergo review, and mechanisms for filing complaints and third-party evaluations, will be established to forestall or redress any action that precludes or constrains competition.
Meanwhile, it is imperative to enhance impartial regulation and tackle inadequacies in government oversight or corporate enforcement of their primary responsibilities.
In the areas concerning public safety and health, a system of hefty fines and compensation will be set up to hold companies accountable for grave consequences arising from legal breaches.
Enhanced protection of intellectual property and promotion of a credit rating-based regulation to foster a dynamic, fair and orderly market was also urged at the meeting.
"We must move quickly to sort through existing decrees to see that our policies are open, transparent and pro-free trade," Li said.