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China trials easier administration in Pudong
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China is suspending a number of regulations regarding administrative approvals in Shanghai’s Pudong New Area, paving the way for a reform to cut red tape in specific sectors.
Approval regulations of items ranging from advertising of pharmaceutical products to use of radiopharmaceutical by medical institutions to first-time import of cosmetics are temporarily suspended in Pudong, the State Council, China’s cabinet, said in a statement released today.
Effective immediately, the suspension will be valid until December 21, 2018, according to the statement.
Specifically, advertising of pharmaceutical products in Pudong will no longer have to file with local regulators during the period while approvals for use of radiopharmaceutical by medical institutions in the area were scrapped.
Approvals of processing trade contracts as well as first-time import of non-special use cosmetics are replaced by a registration method, said the statement.
“The move is part of a pilot reform for Shanghai to separate business licenses from administrative permits,” it said.
Chinese companies used to have to apply for both a business license and administrative permit before they can operate. In 2014, China cut the process for companies to obtain a business license by scrapping requirements on registered capital and location. But entrepreneurs still face barriers to get administrative permits from various industry regulators.
China said earlier that targeted measures would be introduced to cut bureaucracy for businesses as part of an effort to spur innovation and entrepreneurship.
Administrative permits will be scrapped for businesses where there is effective market mechanism and self-discipline, according to a separate State Council statement released earlier.
Administrative approval will be replaced by a registration system for some sectors while in areas where administrative permits cannot be canceled for the time being, the process will become easier, transparent and predictable, it said.
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