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Smaller govt spurs innovation

China Daily | Updated: 2015-05-28 07:49

To further release market vitality and encourage innovation, the State Council, China's Cabinet, has ordered further delegation of central government's powers to lower levels of government, simplification of administrative registration and approval procedures and cancellation of some fees.

This is a further step toward promoting reform of the economic system. To simplify administrative procedures and tap the active roles of the market will help the government clarify its ties with the market, straighten out market rules and put itself in a correct position regarding economic activities. The transformation of government functions will emancipate creativity and boost production.

To lift unnecessary burdens from enterprises will mean the removal of obstacles that have previously hampered their innovation and hindered start-ups. The eradication of excessive administrative restraints and thresholds will reduce rent-seeking of power and thus activate enterprises' enthusiasm for innovation.

Smaller govt spurs innovation

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