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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

15. The negative list for market access should be well aligned with the List of Investment Projects Requiring Government Review and Approval.

The projects subject to government review and approval in the List of Investment Projects Requiring Government Review and Approval (foreign-invested projects and overseas investment projects not included but elsewhere specified) should not be itemized again but directly referenced in the access-restricted list. According to the overall plan for comprehensively deepening reform, relevant departments should speed up studying and formulating a decision on deepening reform of the investment and financing system as well as the regulations on investment projects subject to government review and approval and archival filing, and adjust the List of Investment Projects Requiring Government Review and Approval timely. In the future, while the State Council decides to revise the List of Investment Projects Requiring Government Review and Approval, the negative list for market access should be directly aligned with its revised version.

16. The negative list for market access should be well aligned with the management items for market access proposed according to the laws, administrative regulations and the State Council decisions.

The management measures for market access, proposed according to laws, administrative regulations and the State Council decisions, should be classified into the access-prohibited list and the access-restricted list after review. Relevant departments should make timely and corresponding adjustments for the negative list for market access according to revisions of laws and administrative regulations as well as the clean-up of the State Council documents. The items, which are not clearly prescribed as preconditions by laws, administrative regulations and the State Council decisions, shall no longer go through preliminary review and approval procedures; the items, which are clearly prescribed as preconditions by laws, administrative regulations and the State Council decisions, shall no longer go through preliminary review and approval procedures by revising the laws, administrative regulations and the State Council decisions, except that there is a need to keep it in that way.

V. Safeguards

17. Establishing and improving the access mechanism to meet the requirement of the negative list system for market access.

All kinds of market players may enter sectors, areas and businesses not on the negative list on an equal basis and according to the law, and no longer require government approval. Power should be delegated to enterprises to the necessary extent and market players can decide by themselves items beyond the negative list according to the law. Following the principle of easing restrictions and strengthening regulation where necessary, relevant departments should give an overall consideration to factors such as national security, ecological environment, interests of the people and workplace safety, improve the indicator system for comprehensive evaluation, ensure enterprises to bear the primary responsibility, strengthen supervision according to the law, establish an accountability mechanism for safety review and supervision, and form a new pattern featured with government supervision, enterprise autonomy, industry self-regulation and social supervision. For the items on the negative list for market access, taking different instances into account, relevant departments may explore the means of making a pre-access pledge and further enhance the implementation of other supporting measures such as conducting informative recordation and disclosing information about access. By making a pre-access pledge, we mean that all kinds of market players are allowed to have access after promising to fulfill their legal obligations, undertake social responsibilities and practice social integrity, and submitting a letter of commitment to relevant departments. By conducting informative recordation, we mean that all kinds of market players should immediately fulfill their obligations to conduct informative recordation with relevant departments if their investment and business operations have been carried out. By disclosing information about access, we mean that all kinds of market players should fulfill their obligations stipulated in the Provisional Regulations on Enterprise Information Disclosure according to the law.

18. Improving the review and approval mechanism to meet the requirement of the negative list system for market access.

For items with restricted access, governments at all levels and relevant departments should, based on their review and approval power, regulate their rights and obligations and the standards of review and approval. According to the requirements of The Notice of the State Council on Regulating Administrative Review and Approval by State Council Departments and Improving the Work Related to Administrative Review and Approval (State Council Doc. No. 6 [2015]), and the Notice of the General Office of the State Council on Issuing the Work Plan for Reducing the Number of Items Requiring Government Review and Approval, Regulating Intermediary Services for Investment Projects, and Reviewing and Approving Enterprises' Investment Projects Online (General Office of the State Council Doc. No. 59 [2014]), they should streamline preliminary review and approval procedures, optimize and regulate review and approval procedures, and make them open and transparent with clear power and responsibilities. Preliminary review and approval of the items concerning national security and workplace safety should be regulated and strengthened in accordance with the law. All regions are encouraged to put forward a list of items requiring administrative review and approval prior to market access (the "restricted" category) at provincial-, municipal- and county-level governments, and make clear the names of the items requiring review and approval, the reasons for such requirements, the scope of application, the subject of implementation, handling requirements, the checklist and requirements for application, handling procedures and time limit. We should speed up establishing a "unified, standardized, efficient, convenient, open and transparent" online platform for joint review, approval and supervision, which is featured with "parallel operation, information sharing and full supervision," and ensure all the items requiring review and approval are "made clear, handled, completed and supervised online."

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