Pudong eases bureaucratic measures
Print Edition
SHANGHAI’S Pudong New Area will scrap administrative approval for certain business sectors to cut bureaucracy and boost government efficiency.
The State Council, China’s Cabinet, has approved a pilot reform for the area aimed at separating business licenses from administrative permits so that companies in certain sectors are able to conduct business without obtaining administrative approval.
Chinese companies need to apply for both a business license and administrative permit before they can operate. Last year, China cut the process for companies to obtain a business license by scrapping requirements on registered capital and location. But entrepreneurs still face barriers to get administrative permits from various industry regulators.
“In reaction to enterprises’ needs, the new reform aligns with China’s bid to encourage mass entrepreneurship and innovation,” Sun Jiwei, director of Pudong, said at a press conference yesterday. Administrative permits will be scrapped for businesses — such as used motor vehicles, outdoor advertisements and recordable compact disc producers — where there is effective market mechanism and self discipline, according to a State Council statement.
Administrative approval will be replaced by a registration system for some sectors such as the processing trade.
In areas where administrative permits cannot be canceled for the time being, the process will become easier, transparent and predictable, the statement said. They include motor vehicle maintenance, accounting, financing guarantee and travel agency.
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