China's cabinet, the State Council, decided on Wednesday to further streamline administration by "separating" business licenses from administrative permits to create a more favorable business environment.
The pilot reform, which allows some companies to get their businesses running without obtaining administrative permits, will be practiced in the Pudong New Area of Shanghai, said a statement released after an executive meeting of the State Council presided over by Premier Li Keqiang.
In some areas where the market mechanism is effective and self discipline is well in place, administrative permits will be canceled, said the statement. For the sector of processing trade, administrative permits will be replaced by registration, and companies can start their business activity as soon as they submitted relevant documents to authorities.
In some other areas where administrative permits cannot be canceled for the time being, the process will become easier and companies can have their permits immediately after submitting materials, added the statement. On the other hand, for sectors involving public security and environmental protection, administrative approval will get stricter so as to strengthen risk control, the cabinet said.
It has been high on the agenda of the government to streamline administration and delegate powers to lower levels with an aim to unleash economic vitality. The State Council agencies have canceled or delegated administrative approval power for 537 items since March 2013, meeting the pledged target of cutting the number of items requiring administrative approval by one-third within the term of this government -- two years ahead of schedule, official data showed.
The number of investment projects subject to central government approval is down by 76 percent. In the meeting, the State Council also approved major hydropower and nuclear power projects, vowing to continue developing clean energy to secure steady economic growth.
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