China to further reduce market intervention

China to further reduce market intervention

State Council's latest move reduces intervention and facilitates business

The central government announced on Wednesday it will give up more administrative power to let the market better play its role, streamlining procedures for administrative approvals and easing investment controls.

Once the efforts materialize, the State Council will have cut 221 administrative powers since Premier Li Keqiang unveiled an administrative reform initiative in March.

The latest round of reforms consists of cutting 75 approval requirements and procedures, according to a State Council executive meeting chaired by Li on Wednesday.

Investment projects subject to full market competition no longer need approval, but only have to register with government departments.

For projects guided by industrial policies and technical standards, the rights of approval will be transferred to local governments from the central authorities.

The government will also speed up reforms to transform government functions and economic development patterns.

"The moves show that the government has relaxed its control on sectors open to market competition. It's good news for private capital entering such sectors," said Jin Linbo, vice-president of the National Academy of Economic Strategy at the Chinese Academy of Social Sciences.

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