NDRC Looks to Relax Restrictions Preventing Healthy Economic Development
Xu Wei
DATE:  Jul 18 2017
/ SOURCE:  Yicai
NDRC Looks to Relax Restrictions Preventing Healthy Economic Development NDRC Looks to Relax Restrictions Preventing Healthy Economic Development

(Yicai Global) July 18 -- The National Development and Reform Commission's next goal will be to open the bottleneck restricting healthy development of the real economy and take more effective measures to optimize the business environment, said spokesman Yan Pengcheng at a press briefing on Tuesday.

These measures include preparing a list of requirements for investment approval, relaxing limits on investment sectors, promoting a price reform of electricity and logistics costs while improving efficiency.

The NDRC, China's top price setter and economic planner, must first optimize the business environment by relaxing market access restrictions and providing a level playing field within industries, Yan said. This will involve creating a publicly available list of requirements for investment approval and reducing the list of sectors that investors cannot pump their money into. The list of exclusions has already been adopted in special regions, such as the Shanghai Free Trade Zone, where many investors are from overseas, and the commission hopes to push it nationwide to include domestic investors.

Its second step will be to reduce burdens, he added. This means further reducing corporate tax by abolishing and regulating government funds, administrative fees and business-related service charges; and promoting such measures as a power transmission and distribution price reform to cut the cost of electricity. These measures are still open to public feedback.

The third move will be to strengthen supervision through full implementation of a fair competition review system. The commission will increase supervision and law enforcement efforts in anti-trust legislation and  strengthen the foundations of the social credit system and introduce random inspections with promptly processed results.

The final effort will be to improve the efficiency of government services, by promoting an 'internet meets government services' model to boost the reform of the departmental administrative examination and approval system, encourage the standardization of administrative licensing and streamline administrative exams and approval procedures.

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Keywords:   Investment,Regulator