Full text of Chinese Premier's teleconference address on streamlining administration procedures, cutting red tape (4)

Solid efforts should be made to promote streamlined administration and delegate power this year with clearly-set priorities and deadlines.

(I) Cut down still more review and approval items to earnestly lower the threshold to employment, entrepreneurship and innovation. By the end of May, we will finish sorting out all items requiring non-governmental review and approval by the State Council departments and will thereafter revoke such review and approval category. By the end of the year, we will further revoke some items greater in "value" to society, such as administrative review and approval, review and preliminary approval of investment project, qualification and credential review and certification as well as making performance evaluation, reaching standards, and awarding commendations. By removing by the end of the year over 200 administrative review and approval items as previously designated by the central government for implementation by local governments, we will open greater space for local governments to delegate power.

(II) Cut down still more review and approval items by intermediaries to truly dismantle the so-called "revolving doors" and "glass doors". We should speed up efforts to formulate and announce a list of intermediary services of administrative review and approval by State Council departments while simplifying procedures for intermediary evaluation. We should completely delink the intermediaries from administrative review and approval agencies so as to cut off the chain of interests between the two. Obviously, China's intermediary services fall far short of those in developed countries, an area that promises great potential as a new growth point. Sorting out and regulating intermediary services should not result in restricting their development. Rather, it is aimed at promoting their better and faster development by creating a level playing field and strengthening their functions of services.

(III) Cut down still more red tape in the review and approval process to help the companies and individuals involved. By the end of September, State Council departments should simplify administrative review and approval procedures, reducing the preliminary procedures and making relevant deadlines public, promote integrated and online review and approval, and effectively address problems such as overly complicated and time-consuming procedures and arbitrary conduct in work. We should speed up the establishment of a nationwide information-sharing online platform for the review and oversight of investment projects. It will start operation of connecting all central government departments by the end of June, and of connecting the central and local governments by the end of the year.

(IV) Cut down still more registration procedures and other formalities required of enterprises to clear way for entrepreneurship and innovation. To further facilitate business registration, we will, by the end of the year, complete the three-in-one reform by integrating the business license, certificate of organization codes and certificate of taxation registration, and introduce a new social credit code to the enterprises. This is an important test to our ability to break the chain of departmental interests and form a unified nationwide information platform. I have found out from inspection tours that the new social credit code has been in use in some places, but yet to be recognized by other places. Though still difficult to proceed, we should redouble efforts to popularize the new social credit code across the country, so as to put in place a unified, open and transparent national marketplace for all to join in fair competition. We should continue to innovate the registration modality, allowing two or more companies to register at the same address and one company to set up branches while getting registered just once. Such practice as applying for permit after receiving the license, which is unnecessary and required by no law, will be removed. We should deepen business system reform to ensure sustained growth of new companies along with their business dynamism, thus laying a good foundation for a steadily growing economy and employment.

(V) Cut down still more unlawful, unregulated and unreasonable fees to truly lessen the burden on companies and individuals. The collection of fees must be regulated. Since last year, we have adopted a number of targeted regulation measures, including tax cuts for small and micro businesses and for agriculture, rural areas and farmers, targeted reduction of the bank required reserve ratio, and asymmetrical reduction of interest rates, thus sending a positive signal to the market. These measures have proven effective. But if the fees remain uncut, then the benefit of measures, no matter how numerous we adopt, would be undermined or even canceled out. By the end of May, we should put in place the special plan to clear up and regulate fees. And by the end of the year, we will make sure that all the fees and funds that have been created and approved without proper authorization and legal basis be completely revoked and practices of arbitrarily increasing or expanding fees be stopped. Administrative fees for ordinary public services or general management functions offered by the government, government-run funds no longer suited for economic development, and intermediary fees for administrative review and approval without legal basis will all be eliminated. And fees that exceed the cost of services and funds with a considerable surplus balance should see their contributions lowered.

While reducing and delegating powers, the government should step up the management and restriction of its powers through a strong system, introducing rule of law, enhancing law-based administration, and making itself a law-based government. Honoring the principle that functions and powers are set by law, we should set up the "three lists" quickly, clearly defining the boundary of power and responsibility between the government on the one hand and the market, enterprise and society on the other. With the list of power, the government will know clearly what it can do, and what it cannot do when it comes to things outside the mandate of law. With the list of responsibility, the government will know clearly how it should manage the market, and what it must do as required by law. And with the negative list, companies will know clearly the restrictions they are subjected to, and what they can do outside the confines of law. With the three lists in place, it is easier for us to control the "visible hand" in accordance with law, leverage the "invisible hand", and block the "rent-seeking hand". Within this year, we should basically complete the publication of the power list for the government departments at the provincial level, and conduct studies and pilot programs on the power list and responsibility list for the State Council departments. (mo