The State Council "directed decentralization" to promote entrepreneurial employment

The State Council recently held an executive meeting where it announced the cancellation and decentralization of 52 administrative approval items. These measures aim to boost investment, entrepreneurship, and scientific innovation while reducing unnecessary bureaucratic hurdles. Among the 52 items, 34 were related to business startups and investment, 10 aimed at supporting research and development, and 8 focused on professional qualifications. The reforms are part of a broader strategy to promote entrepreneurial employment and create a more flexible and dynamic economy. During the meeting, Premier Li Keqiang emphasized the importance of streamlining government procedures and shifting from pre-approvals to post-approvals. He criticized some outdated approval processes that had not been used in years, calling them unnecessary and inefficient. One example he cited involved a Sino-foreign cooperation project that was purely commercial and did not require government intervention. Li argued that excessive regulation could stifle business activity and that effective supervision should come after the fact, not before. The meeting also addressed the need to reduce the number of professional qualification licenses. Several of these were deemed redundant or irrelevant, such as the "International Business Professionals" certification, which even the Minister of Commerce admitted was not necessary for his role. The move is intended to lower barriers to entry for workers and make the job market more accessible. Liu Pei-lin, a researcher at the State Council’s Development Research Center, highlighted the importance of creating an environment that supports entrepreneurship. He stressed that while public funding is not always needed, institutional support—such as fair opportunities and clear regulations—is crucial. He also pointed out that small and medium enterprises (SMEs) play a vital role in China’s economy, contributing significantly to job creation and economic growth. In addition to simplifying approvals, the meeting discussed the need for stronger post-event supervision. Li Keqiang warned that decentralization should not lead to a lack of oversight. Instead, it should be accompanied by improved regulatory frameworks to ensure accountability and efficiency. He emphasized that the goal is not just to “let go,” but to manage effectively and maintain control over key areas. The reforms are seen as a step toward building a more open, transparent, and predictable market. By reducing red tape and promoting a culture of innovation, the government hopes to stimulate private sector growth and improve overall economic performance. As the country faces challenges such as high youth unemployment and slowing growth, these changes are viewed as essential for long-term stability and development.

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