China to further improve business environment, lower institutional transaction costs

China will take further steps to foster an enabling business climate and lower government-imposed transaction costs, to continuously ease the burden of market players and unleash their vitality, according to the decision made at the State Council's Executive Meeting chaired by Premier Li Keqiang on Wednesday.

Noting that reform is a critical instrument in the policy toolkit, the meeting stressed adopting reform measures to boost market vitality and further reduce government-imposed transaction costs for market entities.

Unwarranted business-related fees will be redressed thoroughly. The exercise of government power will be strictly delimited. Irregularities such as arbitrary charges and excessive taxes and fees will be held accountable.

Li said, "Over the years, the government has been checking the growth of non-tax revenues, by setting a strict boundary for the exercise of government power and resolutely curbing arbitrary charges and fines."

On industrial production approval, a category-based approach will be adopted in regulating products of the same series. Regulatory oversight will be strengthened, and production and sale of counterfeit and substandard goods will be clamped down resolutely, to uphold fair competition. The mechanisms for the gathering and handling of clues to problems in the business environment will be improved.

"We must continue to deepen the reform of government functions, to foster a world-class, market-oriented business environment governed by a sound legal framework," Li said.