China to further business system reform

China will deepen the reform of its business system and relieve burdens on enterprises, according to tasks set out in a circular released by the General Office of the State Council on Sept 10.

The move is part of efforts to unleash potential for innovation and entrepreneurship and spur business vitality in a market-oriented, law-based international business environment, as the country seeks to advance social and economic development while implementing COVID-19 prevention and control measures.

By the end of this year, an online service platform for business opening should be launched in all provinces, autonomous regions and municipalities, as well as the Xinjiang Production and Construction Corps, thus helping shorten the time needed to start a company to four working days or less.

With enhanced supervision and security, electronic business licenses, invoices and seals should be applied in more fields.

Province-level people’s governments will get support in piloting separate registration of business residence and premises, allowing a market entity to register one residence and multiple operation sites simultaneously.

In registering an enterprise’s name, big data and artificial intelligence should be used to strengthen real-time maintenance for the bank of restricted and prohibited words and phrases.

Review, approval and other procedures related to production and operation of businesses should be simplified.

To improve the compulsory certification mechanism for products, certification agencies should offer better one-stop certification and testing services.

For instance, streamlined processes will apply to certifying products from exporters now turning to the domestic market.

To deepen the reform of accrediting inspection and testing agencies, an administrative notification-based commitment system for accreditation will be promoted across China in 2021.

For stronger oversight, disclosure of business information should catch up, and a unified social credit code should be harnessed to create more complete business credit records.

Smart applications should give a boost to regulation. And market regulation featuring random inspection targets and inspectors and prompt information release should be further improved.