China / China

Policy digest

By Zhang Yue (China Daily) Updated: 2017-07-04 07:26

Cabinet releases license reform rule

Nineteen categories of industrial products will no longer be required to have a manufacturing license, according to a document released by the State Council, China's Cabinet. In addition, authorization of eight types of industrial products will be delegated to provincial-level governments. The new rule reduces the number of types of industrial products requiring manufacturing licenses to 38, with half of them to be managed by the General Administration of Quality Supervision, Inspection and Quarantine and the other half by provincial governments.

China streamlines administrative power

The general office under the State Council issued a timetable for streamlining and delegating administrative powers for this year. The government's key targets in streamlining administration within the year include a nationwide unified catalog for charging, as well as reducing burdensome certification for residents. Targets for this year were drawn up during a video and telephone conference, presided over by Premier Li Keqiang on June 13. The government will encourage the participation of social capital in the public service. A comprehensive network for information disclosure across departments under the State Council will be established in 2017.

Medical payment system to be reformed

Medical insurance funds will be better managed and a diversified medical payment system based on different types of diseases will be set up, according to the State Council's latest document on medical payment reform. Methods of medical payment may vary depending on the type of disease, whether the patients are hospitalized and the level of hospitals involved. The reform, aiming to diversify medical payment channels and ensure the long-term sustainability of the payment system, is to be applied across the country by 2020 and regulation of medical insurance funds will become stricter, according to the document.

Fee cuts to benefit individual, enterprise

The National Development and Reform Commission and the Ministry of Finance have jointly released a document on reducing administrative fee charges, such as for passports and driving licenses, and fees for land use for construction, to reduce financial burdens on enterprises and individuals. Starting from July 1, telecommunication number fees have been reduced as have fees for driving licenses, passports and certificates for traveling from the mainland to Hong Kong and Taiwan as well as land-use fees for construction, according to the document.

Students set to receive free textbooks

The Ministry of Education and the Ministry of Finance have issued a joint new guideline that requires provision of free textbooks for primary and middle school students in compulsory education. This means the previous piloting free textbook policy now covers the whole country. Local finance authorities are responsible for shouldering the costs of textbooks and purchasing of these must abide by relevant laws and regulations. The State decided in a document released in 2015 that starting from the spring semester of this year, students in primary and middle schools should receive free textbooks.

Negative list facilitates foreign investment

From July 28, the negative list, which identifies sectors and businesses that are off-limits or restricted from foreign investment, will be implemented nationwide, according to the Catalogue of Industries for Guiding Foreign Investment (2017 Revision), jointly issued by the National Development and Reform Commission and the Ministry of Commerce. The document includes the negative list as well as sectors and industries that the government wants to encourage foreign companies to invest in. The guideline said that China will use a "negative list" management approach for all foreign investment, open up more sectors and further relax restrictions for foreign businesses. The new catalogue shortened the list of sectors that completely ban foreign investment from 36 to 28. Sectors that are off-limits to foreign investors include air traffic control and compulsory education institutes.

CIRC to strengthen insurer management

The China Insurance Regulatory Commission (CIRC) said it will enhance supervision on insurers, particularly in corporate governance, according to a recent announcement from the commission. The CIRC will conduct comprehensive reviews of insurers, with a focus on improvement of corporate governance.

Intellectual property rights to be protected

The State Administration for Industry and Commerce said it will strengthen protection of trademarks and combat illicit market behavior that jeopardizes intellectual property rights. The administration recently released a document on protecting intellectual property rights and punishing production of fake products. It also said that it will strengthen management of product quality in the circulation channels and supervision of oil products. The administration mapped out some key areas where it will carry out stricter regulation, including the internet, rural areas and urban suburbs, and exported products. It said that it will focus on combating fake products and false advertising through online platforms to straighten out behavior of product and service providers on internet platforms. It also said that it will join hands with other departments to strengthen regulation of cross-border trade, especially products sold to countries along the Belt and Road.