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SCIO briefing on administrative approval system reform

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CCTV:

We know that the State Council has already delegated 632 administrative approval items on seven occasions. However, some media organizations have complained that the delegated items are non-essential ones that society is not so concerned with. What will the government do to improve this?

Li Zhangze:

Society and the media have paid a lot of attention to the importance of abolished and delegated approval items. The leadership of the State Council also attaches great importance to that. Premier Li Keqiang has given several instructions, saying that the items should focus on investment, innovation, starting businesses and other economic and social development fields, which are of high importance and would release dividends of reform, and stimulate the vitality of the market.

To raise the importance of the abolished and delegated approval items, we have done the following work last years.

Firstly, we have ensured all the abolished and delegated approval items are true and accurate. Last year, we spent more than eight months screening and verifying the current 1235 approval items in all government departments, and published them on the Internet to the public on March 17. The authenticity and accuracy of approval items is a basic element of increasing their importance.

Secondly, we have emphasized both quality and quantity. Quantity is the foundation, while quality is the key, which is the principle we always insist in our work. On the one hand, we make all effort to meet Premier Li’s requirement of delegating one third of current approval items; on the other hand, we have paid more attention to the relevance of the abolished and delegated items to in line with the economic and social development.

Thirdly, continuously raise the importance of the work of streamlining administration and delegating power. Since last year, we have sorted out over 700 items from the total of 1235 items related to investment, innovation, starting business and employment to collect advice and suggestions from provincial governments, industry associations, chambers of commerce and industry and some private enterprises. After that, 52 different departments were asked to reform the approval system based on in-depth study. In July, we have abrogated and delegated 53 approval items, half of which are those of high “importance.” In August, the executive meeting of the State Council has approved the abolition or delegation of 87 approval items, 68 of which are have been abolished, and 70 of which refer to investment and business operations.

I would like to tell you that recently, the State Council initiated a social survey in Hebei, Liaoning, Zhejiang and Gansu provinces, to collect comments and suggestions on the transformation of government functions, streamlining administration and delegating power. The results show that 39 percent of enterprises are “satisfied” about the reform, while 42.6 percent are “basically content with it,” making the satisfaction rate 81.6 percent.

In addition, recently the State Council invited the Chinese Academy of Governance as a third party to evaluate the implement of the approval system reform. The expert groups think that “importance” is an element which should be considered dialectically. Firstly, items are of low “importance” should also be abolished if needed. Secondly, there are connections as well as differences between the “importance” of single items and the integral system. Most enterprises only pay attention to the “importance” of single items, which would lead to misrepresentation of the reform. Thirdly, “importance” is a relative concept, different people have different understandings. Fourthly, the tasks of the approval system are becoming more and more difficult. As we all know, the reform this time follows the previous ten-year reform, during which more than 2000 approval items were abolished or delegated. These are some of the ideas from the expert groups from the Chinese Academy of Governance, for everyone’s reference.

In future, we will continue our work to deepen the approval system reform by adopting more effective measures and improving “reduction, quality and efficiency” in the following three aspects. Firstly, establishing and refining a normalized supervision and inspection mechanism. The inspection group of the State Council will continuously examine other 30 departments after the on-going examinations of 24 departments. All the approval items which could be regulated by the market mechanism will be abolished, while all the items which could be managed by local governments will be delegated. Secondly, collecting different ideas and suggestions. Experts, scholars, government departments, industry associations, enterprises as well as the public and the media are all welcomed to offer opinions and give advice. Thirdly, refining the examination and evaluation mechanism. We will include approval system reform in the examination mechanism of local government, and invite third parties to evaluate our work, in order to raise the “importance” of the reform of government examination and approval system.

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