By Li Guoqiang & Ma Xiaobai, DRC

2018-7-9

The reform of business system is an important decision made by the CPC Central Committee and the State Council. It is an important measure for the government to change its functions, including streamlining administration and delegating more powers to lower-level governments, stabilizing economic growth, advancing reform, making structural adjustments, improving living standards and increasing employment opportunities. The reform of business system is an important concept innovation, system innovation and service innovation in the history of market access and supervision in China, which has become a major breakthrough in promoting the transformation of government functions and the reform of administrative system across the board. Through continuously releasing the reform dividend, the reform achievements have been consolidated.

I. The achievements of the business system reform. First, it has promoted the rapid growth of market entities, kept the vigorous growth momentum of new enterprises, and provided tremendous vitality for mass entrepreneurship and innovation. Second, it has promoted the decentralization of the government powers, and improved the reform of administrative examination and approval system, making positive contributions to building a sound business environment. Third, entrepreneurship boom has increased employment opportunities, and played a positive role in ensuring employment and easing the downward pressure on economic growth. Fourth, it has created conditions for the construction of new market supervision mechanism. The new market supervision mechanism with credit supervision at its core is forming, and the effect has shown initial results. Fifth, the vigorous development of new industries and new formats has provided a new driving force for the development of high quality economy.

II. The highlights of reform in various regions. First, the simplification of the business system reform has greatly facilitated market access, paved the way for the establishment of enterprises, merged different forms of certification required of businesses into one certificate, and introduced a unified business license and a unified social credit code. Second, the national business and market supervision departments have followed the principle of relaxing market access with strict management, and fully implemented an oversight model using randomly selected inspectors to inspect randomly selected entities and requiring the prompt release of results.

III. Problems and major issues for future work. In spite of the outstanding achievements made in the reform of the business system in China in recent years, the institutional obstacles restricting investment and entrepreneurship still exist, the overall ranking of China’s business environment in the world still stays at the middle level, and there are some problems to be addressed. Regarding the next step, first, we need to make new progress in promoting the reform of the business system in wider areas and at higher levels, promote the active development of the market entities and consolidate the microcosmic foundation for the construction of the modern economic system. Second, we need to improve the system for conducting both registration and post-registration oversight over businesses, set up a system in which the good could eliminate the bad and strive to create a fair competition and sound consumption market environment. Third, we need to make new progress in strengthening the protection of intellectual property rights, vigorously encourage and protect innovation, and promote the quality reform of China’s economic development. Fourth, we need to make new progress in strengthening the protection of consumer rights, better serve the growing needs of the people for a better life, and allow market forces to enhance the improvement of supply quality. Fifth, we need to make new progress in safeguarding the unified national market, break administrative monopoly, prevent market monopoly and expand the space for economic development in China.