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

Based on the principle of trial implementation before gradual popularization, we will try out the negative list system for market access in some regions from December 1, 2015 to December 31, 2017. By accumulating experience and making gradual improvements, we will explore to form a national unified negative list for market access and establish a corresponding system and mechanism. The national unified negative list system for market access will be officially implemented from the year 2018 on. The National Development and Reform Commission and the Ministry of Commerce shall take the lead to propose a draft negative list for market access and identify the pilot regions, submit them to the CPC Central Committee and the State Council for approval and then organize these regions to carry out the pilot work. The provincial-level governments in these pilot regions should, on the basis of the draft negative list for market access, put forward a plan for trying out the negative list system, and submit it to the State Council for approval before implementation. Where the implementation of the relevant laws, administrative regulations and their relevant provisions are suspended, it should be handled in accordance with legal procedures.

According to the requirements of The Work Plan for Carrying out the Pilot Reform of the Negative List System for Market Access (See Annex), the provincial-level governments in the pilot regions should strengthen organizational leadership and overall coordination, improve the working mechanism including process management, warning and forecasting, information feedback and dynamic performance evaluation, and ensure substantive progress on the reform. Relevant departments should enhance coordination with the pilot regions and try out the reform measures to optimize the market access management there. Departments including the National Development and Reform Commission and the Ministry of Commerce should strengthen guidance, supervision and inspection, discover and solve various problems in the process of the reform timely, and report significant matters to the State Council without delay.

12. Procedures of adjusting a negative list.

Based on the principle of streamlining administration and delegating government power, easing restrictions and strengthening regulation where necessary, and improving services, a negative list for market access should be adjusted timely after implementation according to the overall progress of the reform, economic restructuring as well as revised laws and regulations. With the authorization of the State Council, the National Development and Reform Commission and the Ministry of Commerce should take the lead to establish an inter-departmental deliberation and coordination mechanism, take charge of the daily work of implementing the negative list system for market access and carry out third-party evaluations. Adjusting significant items therein and increasing management measures for market access should be reported to the State Council for approval. While adjusting management measures for market access according to laws, administrative regulations and the relevant provisions of the State Council decisions, or adjusting non-essential contents such as technical and declarative contents, or decreasing management measures for market access, relevant departments should make suggestions for adjustment and submit them to the State Council for the record after review of the deliberation and coordination mechanism. What is involved in national security should be reported to the National Security Commission of the CPC Central Committee for review in advance.

IV. Methods of identification and the alignment with current systems

13. The negative list for market access should be well aligned with the list of items for administrative review and approval.

While drawing up a negative list for market access, we should align it with the list of items for administrative review and approval. The restrictive measures about the sectors, areas and businesses which market players have access to during their investment and business operations should in principle be incorporated into the negative list for market access. Those items concerning market access, which are free from administrative review and approval and not included in the List of Items for Administrative Review and Approval by all Departments of the State Council, should not be incorporated into the negative list for market access. Other items which are qualified for the negative list after review should be itemized in it. In the future, while the State Council decides to annul, increase or adjust items subject to administrative review and approval, the negative list for market access should be directly aligned with the revised list of items for administrative review and approval.

14. The negative list for market access should be well aligned with the Guiding Catalog for Industrial Restructuring.

The eliminative and restrictive project categories in the Guiding Catalog for Industrial Restructuring should not be itemized again but directly referenced in the access-prohibited list, according to the State Council decisions on Releasing and Implementing "Interim Regulations on Promoting Industrial Restructuring," (State Council Doc. No. 40 [2005]) which says "investment is banned in the eliminative category of projects" and "investment is banned in the restrictive category of projects." Relevant departments should adapt to industrial restructuring and the new situation that ever-changing new products and technologies emerge in an endless stream, and revise the Guiding Catalog for Industrial Restructuring in a timely manner. In the future, while revisions are made in the Guiding Catalog for Industrial Restructuring, the negative list for market access should be directly aligned with its revised version.

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