Gov't function reform China's top priority (2)

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Gov't function reform China's top priority (2)

By Xinhua Writer Zhu Shaobin (Xinhua) 20:32, October 12, 2013

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During the past 30-odd years of reform and opening-up, the country has grown from the world' s 10th biggest economy in 1978 to the present position of second biggest. Despite this achievement, problems remain, with administrative monopoly being one of them, said Wang.

Private enterprises still encounter market access barriers and unfair treatment due to monopolies of state-owned companies. The excessive administrative authority has impedes market activity, Wang said.

Chinese Premier Li Keqiang said last month at an economic forum that the key to economic reform is to balance government, market and society, and let the market carry out its role to induce more vitality.

Wang believes it is critical that reform creates a fair market and improves public administrative efficiency.

"Our government should act more like a night watchman, and reduce intervention in the micro-economy," he said.

Analysts said the "negative list" approach being tried in the FTZ is just such an attempt to slash administrative power. This approach allows more freedom for foreign investors setting up business as they will operate according to a clear-cut "not-to-do list" instead of a vague "to-do list".

In recent years, China's central government has been stressing government's function change and relegating authoritative power. The State Council, the Cabinet, has this year scrapped or relegated more than 200 approval rights.

A report by the Research Office of the State Council said such efforts are driving the government toward transparency, more limited powers and to becoming more service-oriented.