The State Council "directed decentralization" to promote entrepreneurial employment
**Abstract**
Among the 52 administrative examination and approval items that were canceled or delegated, 34 were related to investment and entrepreneurship, 10 aimed at promoting scientific research and innovation, and 8 pertained to professional qualifications. These reforms are designed to "point-to-point" support entrepreneurial activities and employment. The State Council held an executive meeting yesterday, where decentralization was once again a central topic.
During the meeting, it was confirmed that the government will further streamline administrative procedures by canceling and delegating a new batch of 52 administrative approvals. Additionally, 36 pre-approval items for industrial and commercial registration will be converted into post-approvals, and the approval for certain professional technical qualifications will be abolished.
The meeting emphasized that among the 52 items, 34 were directly linked to investment and entrepreneurship, with the goal of stimulating employment. Examples included the preferential tax approval for small enterprises, services for unemployed workers, and tax exemptions for laid-off individuals.
Liu Pei-lin, a deputy director at the Development Research Center of the State Council, highlighted that the current era is marked by a strong emphasis on innovation and entrepreneurship. He proposed the concept of "building a country through entrepreneurship," which he believes can boost public initiative and creativity, while also creating more job opportunities, especially for youth.
At the meeting, Premier Li Keqiang criticized some outdated approval processes, pointing out that certain items had not received a single application in eight years. He questioned why such approvals were still required, especially when they involved purely commercial activities without affecting national sovereignty or security.
He stressed the importance of shifting from pre-approvals to post-approvals, saying that real-time supervision would be more effective. This reform aims to reduce bureaucratic barriers and encourage more people to start businesses.
The meeting also focused on reducing the number of professional qualification licenses, including eight related to qualifications. It also included 10 items related to business units and social organizations, such as the approval for special research funds in universities, aiming to enhance academic autonomy and promote scientific innovation.
Li Keqiang emphasized that all future professional qualification approvals must be based on laws and regulations, ensuring transparency and fairness. He warned against arbitrary licensing and stressed that any regulation must be legally grounded.
Moreover, the meeting discussed the need for stronger post-event supervision after decentralization. Li Keqiang pointed out that simply removing pre-approvals does not mean the government’s role has diminished—it now needs to focus more on monitoring and ensuring compliance.
Liu Pei-lin added that improving the system involves not just deregulation but also enhancing oversight. Effective supervision is key to building a fair market and demonstrating the transformation of government functions.
In conclusion, the recent reforms aim to create a more dynamic, open, and efficient environment for entrepreneurs and businesses, while ensuring that the government remains accountable and transparent. These changes are expected to drive economic growth and improve the overall business climate in China.
Tianjin Alcoa International Trade Co., Ltd. , https://www.tjalcoa.com