China Seeks to Eliminate Regulations That Hurt Business Environment

China is actively working to revise and eliminate laws and regulations that result in unfair treatment of private businesses. The Ministry of Justice has called upon the public to help identify policies that negatively impact the business environment [para. 1].

The Ministry of Justice is accepting information until the end of September on rules that inhibit market entry, limit access to production factors, impose discriminatory penalties, or favor certain businesses over others. This initiative aims to address such issues as part of broader measures to optimize the business climate, following a thorough cleanup last year of over 600 existing administrative regulations [para. 2][para. 3].

The ministry is specifically targeting laws, regulations, and policies that impose “unreasonable or discriminatory conditions” on market entry and exit within areas such as infrastructure project construction, bidding, and government procurement. They are also interested in receiving tips about regulations that enforce discriminatory pricing for non-local and imported goods and services, or that exclude non-local firms from local public resource transactions [para. 4][para. 5].

The ministry has expressed a particular interest in policies that set “unreasonable restrictions on enterprises’ access to capital, land, and talent,” or that force enterprises to participate in monopolistic practices as defined by the Anti-Monopoly Law. Additionally, they are seeking information on illegal administrative measures that require businesses to disclose sensitive operational information [para. 5][para. 6].

Reports on illegal administrative supervision and enforcement practices, such as discriminatory inspection regimes or varied discretionary standards for different enterprises, are also welcome. The goal is to ensure a leveled playing field for all business entities [para. 7].

China has ramped up its efforts to strengthen the private economy this year, in light of weak consumer confidence and a stagnant real estate market that are weighing down the country's economic recovery. Earlier in March, the National People's Congress Standing Committee included drafting a law aimed at promoting the private sector in its legislative plan for the year [para. 8].

For further details, the public may reach out to reporter Kelly Wang at jingzhewang@caixin.com or editor Michael Bellart at michaelbellart@caixin.com [para. 9].