The Presidency of the People's Republic of China

09/14/2018 | Press release | Distributed by Public on 09/14/2018 07:09

2018/09/14 Premier stresses better regulation

At the State Council executive meeting chaired by Premier Li Keqiang on Sept 12, decisions were made to roll out the separation of business licenses from operation permits nationwide based on its pilot run in Shanghai Free Trade Zone.

'To push forward the reform, we must further ease market access while strengthening supervision,' Premier Li said, adding that the government should fulfill its responsibility in regulation while allowing the market to play a bigger role.

Business licenses and operation permits are both required for starting business operations. Since the business reform in 2014, business licenses alone can grant market access for enterprises. However, they still cannot start their businesses without operation permits.

By the end of 2015, the pilot reform to separate business licenses from operation permits was unveiled in the Pudong New Area of Shanghai, which was decided to be expanded nationwide at the meeting on Sept 12.

The move will remove barriers for enterprise operations after they obtain market access.

It meets both corporate and public needs, and is a necessary part of the reform of our market economy system, Premier Li said.

According to the Premier, the business environment should be further optimized by streamlining market access and enhancing supervision, to create a fair competitive environment for all.

He noted that the reform is actually a shift in the focus of government functions from approval to supervision.

'The reform will help improve the business environment, energize the market and catalyze stronger development,' the Premier said.