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中文USEUROPEAFRICAASIA

Registration eased for foreign firms

By Zheng Yangpeng ( China Daily ) Updated: 2013-11-08 00:11:09

As of September, the number of new foreign companies set up in China this year reached 16,351, which was a drop of 9.29 percent over the same period of last year, data from the Ministry of Commerce showed.

Still, Zhang said, this reform reflects the central government's commitment to reforming the role of government, a break from the past's "emphasizing approval while neglecting afterward regulation" model.

"In the future, we will adhere to a ‘low threshold and strict regulation' model," Zhang said.

The reform was viewed by analysts as showing the new leadership's resolve to unleash the dynamism of the market, encourage private businesses and boost employment.

Prior to the announcement, a trial of streamlining company registration took place in Shenzhen and Zhuhai, two cities in Guangdong province.

According to the State Administration of Industry and Commerce, by the end of September, the number of new market entities, including individual proprietorship, soared by 98.5 percent in Shenzhen and 52.5 percent in Zhuhai compared with the figures from the end of 2012.

Zhang added that no instances of massive fraud were seen in these pilot cities, contrary to what many had feared.

But analysts said that overseeing the companies remains a problem, as coordination among various regulators would be a challenge.

For example, regulation of an Internet cafe would involve not only the State Administration of Industry and Commerce but also other regulators, such as the Ministry of Culture and Ministry of Public Security.

The latest reforms also involve replacing the annual inspection of companies with a reporting system that can be viewed online to increase the transparency of business operations.

zhengyangpeng@chinadaily.com.cn

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