Why did Li Keqiang use the policy of streamlining administration and delegating power as a "starting point" for five consecutive years?

At the first executive meeting of the State Council in 2017, Premier Li Keqiang deployed the "first shot" of "streamlining administration and delegating power".

The three agenda items determined at the meeting on that day correspond to the three levels of the "streamlining administration, delegating powers, and improving services" reform: the decision to cancel another batch of administrative licenses implemented by designated central authorities and to clean up and standardize a batch of administrative approval intermediary services; Deliberate and approve the market supervision plan for the 13th Five Year Plan; Deploy innovative government management and optimize government services.

By carefully reviewing the first agenda of the State Council executive meetings held in the previous four years, it can be found that the first executive meeting after the establishment of this government in March 2013 focused on studying and promoting the transformation of government functions; At the first executive meeting in 2014, it was decided to further introduce three measures to deepen the reform of the administrative approval system; The first executive meeting in 2015 determined measures to standardize and improve administrative approval; The executive meeting on January 13, 2016 decided to launch another batch of measures to streamline administration and delegate power. For five consecutive years, the "flagship" of this central government's work has been "streamlining administration and delegating power"!

At a leadership meeting of the State Council, it was said that the first executive meeting of the State Council this year still deployed the promotion of streamlining administration and delegating power, which fully demonstrates the determination and attitude of the current government to "adhere to reform without wavering". Premier Li Keqiang also reminded the attendees during the discussion to carefully study the cancellation of approval and other matters based on the actual functions of their respective departments.

It can be said that our reform of 'streamlining administration, delegating powers, and delegating powers' has now entered a' deep water zone ', "the Premier said

Reform is endless, with the fundamental goal of liberating and developing productive forces

Li Keqiang emphasized at the meeting that promoting the "streamlining administration, delegating powers, and delegating powers" and further transforming government functions are reforms that are driving the "bull's nose".

The most basic content of promoting supply side structural reform is to streamline administration and delegate power, and accelerate structural tax reduction. Only by continuously deepening these reforms can we truly stimulate market vitality and social creativity, "said the Premier.

At the beginning of the establishment of this government, Premier Li Keqiang publicly promised at a press conference to reduce more than one-third of the existing 1700 administrative approval items in various departments of the State Council. Now, the current central government not only exceeded its promised targets ahead of schedule, but also continues to "intensify" and deepen this reform.

Li Keqiang reiterated at the executive meeting on January 4th that in order to play a decisive role in market allocation of resources and better leverage the role of the government, the key is to handle the relationship between the government and the market.

He reminded the relevant department heads to be aware that there are still many administrative approval matters that need to be cleared up, and the "streamlining administration, delegating powers, and improving services" reform cannot be relaxed for a moment.

Laozi said, 'There are many taboos in the world, but the people are poor.' Only by loosening the ropes that bind the hands and feet of the common people (47.130, -0.19, -0.40%) can we truly unleash the intelligence and creativity of 1.3 billion people! "The Premier said," Reform is endless, and the fundamental purpose of our reform is to liberate and develop productive forces

Where are the high costs of enterprises, and is it not because institutional transaction costs are too high?

Recently, there have been voices suggesting that the tax burden on enterprises is too high. However, upon closer examination, it is mainly due to the excessive non tax burden on enterprises. Where are the high costs for enterprises, and is it not due to the high institutional transaction costs? "Said Li Keqiang.

He further pointed out that to promote the reform of streamlining administration and delegating power, it is necessary to cancel approval projects, shorten approval processes, and effectively clean up various unreasonable fee items such as intermediaries, so as to truly reduce the institutional transaction costs of enterprises.

On the same day, the meeting decided to cancel 53 licenses, including the enrollment brochure and advertising registration approval for private schools, cotton processing qualification recognition, and 20 intermediary service items related to the approval of railway transportation infrastructure production enterprises for legal qualification recognition, on the basis of the cancellation of 230 administrative approval items designated by the central government for local implementation by the current government.

Li Keqiang pointed to the materials in his hand and gave an example, saying, "In the past, there were some approval projects, such as' official seal engraving ', which were repeatedly approved by several departments, resulting in an extremely complicated and time-consuming formal official seal engraving process. However, counterfeit and inferior official seal engraving is very fast. Government personnel can no longer sit in the office receiving documents and drawing circles! We need to truly understand what kind of services market entities need and effectively transform government functions!

He emphasized in the end, "The general principle is one sentence: we must both let go and control it

Greatly reducing discretionary power and effectively reducing the burden on market entities and the people

How to truly 'manage' while being able to 'let go'? Li Keqiang's "prescription" is to promote comprehensive market supervision in accordance with laws and regulations.

At the meeting that day, it was decided to focus on creating "three environments" during the 13th Five Year Plan period: a relaxed and convenient access environment, a fair and orderly competition environment, and a safe and reassuring consumption environment. Li Keqiang explicitly requested relevant departments to increase regulatory efforts while striving to "simplify and eliminate complexity" and promote comprehensive market supervision.

Li Keqiang emphasized in the end, "We will continue to push forward the 'streamlining administration, delegating powers, delegating powers, and improving services' reform in depth, persistently and persistently. This is the fundamental measure to handle the relationship between the government and the market and transform government functions. Only by persistently promoting this reform can the vitality of enterprises truly be unleashed and the people benefit from it

Source: Global Textile Network