Cutting Back on Red Tape
The Chinese Government places more power in the hands of the market and enterprises
Current Issue
· Table of Contents
· Editor's Desk
· Previous Issues
· Subscribe to Mag
Subscribe Now >>
Expert's View
Market Watch
North American Report
Government Documents
Expat's Eye
Photo Gallery
Reader's Service
Learning with
'Beijing Review'
E-mail us
RSS Feeds
PDF Edition
Reader's Letters
Make Beijing Review your homepage
Hot Links

cheap eyeglasses
Market Avenue

Editor's Desk
Print Edition> Editor's Desk
UPDATED: June 3, 2013 NO. 23 JUNE 6, 2013
Decentralizing the Economy

On May 15, China's State Council issued a document saying that 133 items in terms of economy will no longer require the Central Government's administrative approval. This move is expected to stabilize the country's economic growth. It will help the local economy take a more free way in development.

China's economy has withstood the blows of the global financial crisis and realized an early recovery, but its recent sluggish performance has presented a worrying prospect. Evidence shows that a new round of reform is needed to relieve pressure from muted economic recovery.

The new round of reform should deepen the "market-oriented" system. The priority facing the government lies in dealing with both the market and society. The state is supposed to give up power in some areas while focusing on other affairs, so as to stimulate the innovation of major market participants and increase the internal driving force for economic growth.

China's market economic mechanism has only just taken shape, and is still quite immature. Moreover, the government sometimes tends to intervene in issues it should not get involved in. The result has been poor administrative efficiency, an unbalanced economic structure, environmental pollution and corruption.

Areas that no longer need Central Government administrative approval include production and business operations, as well as investment in key areas and monopoly industries. This will greatly help strengthen market competitiveness and encourage enterprises to enhance innovation and the capability to explore the market. The move to lower the threshold for investment and operation alone will greatly stimulate private investment.

Of the areas exempted from administrative approval, some include foreign investment in China and its own investments abroad. This will provide foreign investors more convenience in the local market and create a fairer environment for competition.

Top Story
-Decentralizing the Economy
-Special Coverage: Economic Shift Underway
-The Silence of the Kids
-Hands Together
-Water Town of Dreams
Related Stories
-Cutting Back on Red Tape
Most Popular
About BEIJINGREVIEW | About beijingreview.com | Rss Feeds | Contact us | Advertising | Subscribe & Service | Make Beijing Review your homepage
Copyright Beijing Review All right reserved