Business / Policy Watch

The opinions of the State Council on implementing the negative list system for market access

(chinadaily.com.cn) Updated: 2015-11-13 09:27

The principle of necessity. Items included in a negative list for market access should be simplified as much as possible and should be indeed necessary. Those items prohibited or restricted by laws, administrative regulations and the State Council decisions cannot be simply incorporated into a negative list for market access. The sectors, areas and businesses where investment and business operations are currently prohibited or restricted for market players cannot be simply copied into a negative list for market access. The items independent of market access and the post-access supervision measures cannot be confused with the management measures for market access. Such measures as registration, information collection and examination and approval for land use, which are generally imposed on market players, cannot be incorporated into a negative list for market access. Applicable conditions for a negative list for market access cannot be mechanically applied and the items which are not suitable for the negative list management cannot be incorporated into it.

The principle of openness. A negative list for market access should be drawn up and adjusted on an open, fair and just footing, thus forming stable, transparent and predictable institutional arrangements and guaranteeing the rights of the general public to be informed and to participate. The items concerned, the basis for and the results of drawing up and adjusting a negative list for market access shall be made public for consultation, except for those that shall be kept confidential according to the law.

10. Procedures of drawing up a negative list.

A negative list for market access is drawn up and released by the State Council; any adjustments required by local governments should be submitted to the State Council for approval by provincial-level governments. All departments and units responsible for market access management should make an overall review on the sectors, areas and businesses where investment and business operations are prohibited or restricted for market players. They should propose their own draft negative lists for market access according to unified classification standards in the Classification of National Economic Industries. (Those applying to various categories in the Classification of National Economic Industries and new operation formats not listed in the Classification of National Economic Industries should be specified otherwise.) The National Development and Reform Commission and the Ministry of Commerce shall take the lead to summarize and review them, form a unified negative list for market access, and submit it to the State Council for approval before implementation.

The management measures for market access, proposed according to laws, administrative regulations and the State Council decisions, should go through legality examination. Their rationality, feasibility and controllability should be assessed according to the requirement for the market to play a decisive role in the allocation of resources. As for those management measures for market access, which are put forward according to department rules and regulatory documents and indeed need to be incorporated into a negative list for market access, we should formulate or revise laws and administrative regulations in accordance with legal procedures, or submit them to the State Council for the final decision after careful argumentation according to the procedures clearly identified in the Opinions.

While drawing up a negative list for market access, we should take differences of regional development into full consideration and make it more practical and well-targeted. Based on a national unified negative list for market access, provincial-level governments are allowed to make suggestions to adjust it according to their own resource advantages, definition of major functional areas, comparative industrial advantages, production cooperation, the network of logistics marketing and eco-environmental impacts. It should be submitted to the State Council for approval before implementation. Without the authorization of the State Council, all regions and departments are not allowed to release a negative list for market access by themselves, and increase or decrease the items included in a negative list.

While drawing up a negative list for market access, relevant departments should improve the decision-making mechanism which combines public participation, expert argumentation with government decision. They should fully listen to the opinions from all regions and departments, organize experts to assess its necessity and feasibility, and solicit opinions from the public. What is involved in national security should be reported to the National Security Commission of the CPC Central Committee for review in advance.

11. Procedures of implementing a negative list.

Hot Topics

Editor's Picks