1st LD Writethru: China announces cancellation of outdated documents, unnecessary deposits

The State Council on Wednesday announced cancellation of 506 documents issued by the cabinet.

The move follows the previous cancellation of 489 such documents.

Some of the documents are in violation of laws or lack legal basis, while others are outdated or may stifle economic growth, according to a circular issued after the executive meeting of the State Council presided over by Premier Li Keqiang.

The cleanup will inject new vigor to the economy and promote restructuring, the circular said.

The meeting also decided to streamline approval of lightening-proof engineering projects. The new policy is expected to benefit over 200,000 projects each year and save considerable time for companies.

China will also stop collecting unnecessary deposits from construction companies, except four types required by law, according to the circular.

Deposits already collected should be returned by the end of the year. Without permission from the State Council, no regions or governmental departments will be allowed to introduce new deposits.

The country will strengthen management of deposits, and adopt different policies according to companies' credit rating. Companies owing their employees wages should pay a higher ratio of deposit, while those not leaving employees unpaid will enjoy exemptions or reductions.

Such measures are estimated to release nearly one trillion yuan (151 billion U.S. dollars) for construction, the circular said. Endi