1st LD-Writethru: Chinese government urges reform of market regulation

Chinese Premier Li Keqiang has urged a nationwide reform of oversight of markets in a bid to reduce unnecessary interference in normal business operations.

A national conference was held on Wednesday to discuss how to push forward the reform that asks for "random inspections of businesses by randomly selected law enforcement officers or inspectors" and the prompt release of results.

In a written instruction, Li said this is key to streamlining administration, transforming the functions of the government, improving performance, and reducing corporate costs and rent-seeking.

That will create a better environment for businesses and start-ups and contribute to sustained and healthy economic and social development, he said.

Chinese authorities seek to reinvigorate the slowing economy through reducing red tape and letting the market play a bigger role in economic operations.

Although China has made progress in streamlining administration, overhauling market regulation and optimizing government services, some measures have not been fully implemented. Unfair law enforcement, arbitrary inspections and inadequate supervision have revealed flaws in market regulation.

At Wednesday's meeting, Vice Premier Zhang Gaoli underlined the importance of striking a good balance between the market's and government's role in the economy.

He said both the "invisible hand" and the "visible hand" should play their parts in the economy, but they should know where the line is drawn and carefully observe it.

He called for full implementation of random inspections by the end of 2017, putting it as a high priority for authorities.

Efforts must be made to create supervision mechanisms and carry out oversight in accordance with the law, he added. Endi