The Notice of General Office of State Council on Focusing on Enterprises’ Concerns and Further Promoting the Implementation of the Policy on Optimization of Business Environment

No.: State Council [2018] 104

Date of issuance: November 8

The people’s governments of different provinces, autonomous regions and municipalities directly under the central government; all ministries and commissions of the State Council; and all institutions directly under the State Council:

The CPC Central Committee and the State Council attach great importance to the initiatives of deepening the reform “delegate power, streamline administration and optimize government services” and optimizing the business environment. A series of targeted policies and measures have been issued in recent years. Positive results have been achieved in the optimization of business environment. However, there still exists some weakness and problems with China’s business environment. The burden of enterprises still needs to be lifted. Micro- and small-sized enterprises still face financing difficulty pending for resolution. The level of investment and trade facilitation is to be further improved. The issue of complicated and delayed approval procedure still exists. Some local regulators tend to adopt the approach of “one size fits all” in the law enforcement. The property protection needs to be strengthened and some policies are not adequately in place.

Now, it is highly required that based on the expectation and needs of market players and regarding the difficult and tough issues hindering the investment, production and operation of enterprises, efforts are to be made to accelerate the creation of market-based, rule-of-law and internationalized business environment and to enhance the confidence and competitiveness of corporate development.

Upon approval by the State Council, the relevant matters are hereby notified as follows:

I. Break improper thresholds and restraint and create a market environment of fair competition

1. Further reduce the restraint on social capital for market access

2. Promote the mitigation of financing difficulty facing micro- and small-sized enterprises

3. Clear out the acts of local protectionism and administrative monopoly

4. Enhance construction of integrity-based governments

II. Promote the facilitation of foreign investment and trade and improve the opening-up level Guarantee the fair treatment to foreign-invested enterprises

5. Guarantee the fair treatment to foreign-invested enterprises

6. Further promote foreign investment

7. Reduce the compliance cost for export and push forward the customs declaration facilitation

8. Improve the export tax rebate policy and accelerate the progress of export tax rebate

III. Continuously improve the quality and efficiency of approval service

9. Further simplify the review and approval procedure of corporate investment

10. Deepen the commercial system reform

11. Further cut the items for administrative permission

12. Accelerate the formulation of list concerning government affairs service and promote the standardization of the service

IV. Further reduce the tax-fee burden on enterprises and cut the production and operational costs for enterprises

13. Sort out the operational service charges in the fields of logistics, certification, inspection and testing and public utilities.

14. Rectify the arbitrary charging by the subsidiary units of government agencies, industrial associations and chambers and intermediaries.

15. Regulate and reduce the corporate margin and rate of social security premium to ease the burden on enterprises.

V. Vigorously protect IPRs and create favorable environment for entrepreneurship and innovation

16. Accelerate the IPR protection system building.

17. Accelerate the implementation of various IPR protection measures.

VI. Consolidate and regulate the in-process and afterwards regulation and maintain a good market order

18. Consolidate the in-process and afterwards regulation.

19. Innovate the market regulation method.

20. Redress the way of “one size fits all” in law enforcement and regulate the rights of discretion.

VII. Strengthen organization and leadership, further identify the work

21. Raise the awareness and further clarify the responsibility for implementation.

22. Fulfill the responsibilities of local governments.

23. Organize the business environment evaluation.

24. Enhance the proper and transparent degree of policy implementation.

25. Strengthen policy publicity and media guidance.

26. Enhance the supervision and inspection over the policy implementation.

The General Office of the State Council

October 29, 2018