China to transform gov't functions

Better positions for ngos

The plan acknowledges that the requirements for establishing social organizations are too high, and even some non-governmental organizations (NGOs) tend to operate in a bureaucratic way like government departments.

"The current management mechanism is no longer suitable for the standardized development of social organizations," Ma said.

The State Council plans to separate industrial associations and chambers of commerce from administrative departments, as well as introduce a competitive mechanism featuring multiple associations for a single industry, which will boost their independence and vitality.

Priority will be given to the establishment of social organizations in the fields of commerce and science and technology, and those related to public interests and charitable and rural-urban community services.

The establishment of a social organization regarding politics, legal issues and religion is subject to prior government examination and approval, as are overseas NGOs applying to open representative offices in China, according to the plan.

More say for local governments

If the proposed reforms are passed by the top legislature, local governments across the country will have a greater say in approving local investment projects.

However, in the meantime, local governments are ordered to follow suit to greatly reduce reviews and approvals of investment projects for an optimized investment environment.

The central government will no longer review or approve items related to business and operation activities that directly target communities, according to the plan.

"The proposed reforms for transforming government functions are moving in the right direction, but more work needs to be done," said national lawmaker Zhou Wenbin, who is also president of Nanchang University in east China's Jiangxi province.

The State Council will reduce its special transfer payment for designated purposes to local regions through budgeted appropriation, and it will increase local government funding through general transfer payment to boost the fiscal strength of local governments, enabling them to better fulfill their duties.

However, in the event of an emergency, the State Council or another authorized government department can take emergency measures in line with laws and regulations to adjust the transfer payment amount.