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Business / Policy Watch

The opinions of the State Council on implementing the negative list system for market access

(chinadaily.com.cn) Updated: 2015-11-13 09:27

VI. Accelerating the reform and establishment of relevant systems

23. Establishing an investment system to meet the requirement of the negative list system for market access.

All enterprises' investment projects, except for those concerning national security, ecological security, distribution of the major national productive forces, strategic resources development and major public interests, should be decided by the enterprises independently in accordance with the law, and no longer require government approval. Following the State Council's guidelines, the National Development and Reform Commission should reform the review and approval system for investment projects, timely revise and release the List of Investment Projects Requiring Government Review and Approval in accordance with prescribed procedures, narrow down the scope of investment projects subject to government review and approval, and review and approve enterprises' investment projects online. We should enhance the coordination and supervision of government departments concerning economic planning, land and resources, environmental protection, technology and work safety, and control market access by setting criteria for environmental protection, energy saving, technology, work safety and other issues. When foreign-invested companies make investments in fixed-asset projects, they should enjoy national treatment and follow the review and record keeping procedures applied to domestic enterprises.

24. Establishing a business registration system to meet the requirement of the negative list system for market access.

We will deepen the reform of the business system, accelerate the implementation of "three licenses in one" and "one code for one license," and roll out a unified system of codes for rating the credit of legal persons and other organizations. We will simplify preliminary review and approval procedures, and reduce the number of items that require qualification verification. All the investment and business operations made by market players on a voluntary basis should not be denied access except that the areas are banned and limited by laws, administrative regulations and the State Council decisions. We will sort out current administrative measures concerning market access and cancel those that are not supported by laws, administrative regulations and the State Council decisions.

25. Establishing a management system for foreign investment to meet the requirement of the negative list system for market access.

Relevant departments should step up efforts to formulate a negative list for foreign investment according to the management model of pre-establishment national treatment and negative list. In line with the requirements of simplification and convenience, we should gradually streamline the licensing procedures for foreign investment areas, explore and implement one-stop review and approval and reduce licensing procedures. According to the need for safeguarding national security, we should make more efforts to improve the system for security reviews of foreign investment. Any foreign investment concerning national security should be subject to security reviews under the national security review system and relevant regulations. We should strengthen the ongoing and ex-post regulation, establish an information reporting mechanism for foreign investment and an information publishing system for foreign investment, and put in place a monitoring system for foreign investment in which governments share information and coordinate inspection and the public plays a part in monitoring.

26. Fostering the market environment for fair trade and competition to meet the requirement of the negative list system for market access.

Relevant departments should review and cancel all kinds of regulations and practices that restrain the market from playing a decisive role in the allocation of resources and impede the national unified market and fair competition, strictly ban and publish all unlawful acts extending preferential policies, combat local protection, oppose monopoly and unfair competition, and prevent relevant policies from impeding the national integral market and fair competition. We will improve the systems and mechanisms that define, operate and protect property rights, liquidity rights, equities and intellectual rights according to the law. We will persist in equality of rights, opportunities and rules, abolish all forms of irrational regulations for the non-public economy, remove all hidden barriers, and adopt specific measures for market players to enter natural monopoly and franchising fields according to the law.   

In order to enhance the system of national governance and the modernization of governance capability, all regions and departments should fully recognize the importance and urgency of carrying out the negative list system for market access, do their work well in the formulation and implementation of the negative list system for market access, speed up relevant reforms and the establishment of matching schemes, timely spot and solve budding, tendentious and potential problems, and ensure that the reform achieves results.                   

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