China cuts red tape on intermediary services

BEIJING - The State Council said Sunday that it had eliminated 17 intermediary service items in a move to cut red tape.

Applicants will no longer need to provide an energy saving assessment for fixed assets investment or a test for radio transmission equipment, which were preconditions for applicants in the approval process in departments of the State Council, according to a document signed by Premier Li Keqiang.

In China, new large-scale businesses or commercial projects must go through government review. Applicants for such reviews must go through intermediary agents, either independent or affiliated with cabinet departments.

This was the third batch of intermediary service items that have been canceled in recent years.

The document said that intermediary service agents had played an important role in government functions and providing specialized technological services, but the services they provided were often lengthy, costly and increased burdens on enterprises and the people.

The State Council said that clearing up and regulating intermediary service represented a crucial step in improving government service and would help reduce burden and clear hurdles for start-ups and innovation.

The cabinet said its relevant departments would gradually transform intermediary services that were related to approval into government procurement to cut business costs.