The Paper:

Statistics show that the total number of China's market entities has reached 158 million, and 100 million of them have been established in the last 10 years. The robust growth of market entities is benefited from the sustainable improvement of the business environment, so my question is, what efforts have the market supervision authorities made in improving the business environment? What pragmatic measures will be adopted going forward? Thank you.

Pu Chun:

Thank you for your questions. To market entities, a sound business environment is like the sunshine, water, and air, each of which is a must-have. The State Administration for Market Regulation has worked to promote the stability and prosperity of the economy through improving the business environment and advanced, in-depth reforms of streamlining administration and delegating power, improving regulation, and upgrading services. Thanks to these efforts, we have effectively energized market entities of various kinds.

First, we have improved the market access system. We have introduced a regulation on the registration and administration of market entities, which for the first time set out unified provisions for the registration of market entities of all types, providing fundamental institutional guarantee for equal access, flexible transfer, and convenient exit of market entities.

Second, we have deepened reforms of systems on market access, business operating permission and market exit. We have replaced the paid-in capital registration system with subscribed capital registration system, and changed from issuing business licenses before operating permits to separating operating permits from business licenses. Efforts have been made on various issues from access of market entities to access of products, from highly efficient market access to convenient market exit, and from registration facilitation to operating permission reform for enterprises. In addition, the practice of enterprises "running back and forth" and handling matters on-site has been replaced with online access to all services and promoting application for electronic licenses and certificates. By doing so, government-imposed transaction costs can be effectively reduced when people make investments and start businesses.

Third, we have moved faster to build a new type of oversight mechanism, which is centered on oversight of credibility. Oversight conducted through the random selection of both inspectors and inspection targets and the prompt release of results has been implemented nationwide. We have also conducted inter-departmental inspections for several matters through a single visit to the same target, avoiding excessive intervention in normal business production and operations. Annual business inspections have been canceled in favor of annual information disclosures. A national enterprise credit information publicity system has been established. Also, a blacklist system for enterprises seriously violating the law or acting in bad faith has been established and improved, as has a category-based management system of corporate credit risks, to make the oversight mechanism more timely, targeted and effective.

Fourth, we have helped market entities overcome difficulties. We have taken further steps to adjust regulations for the levying of charges on enterprises, promoted the implementation of nationwide preferential policies, responded actively to price rises of bulk commodities, keep supply and prices stable in key sectors, and improved technological services for product quality to help raise the quality and performance of enterprises. Meanwhile, the establishment of an inter-departmental joint meeting mechanism to support self-employed individuals has been submitted to the State Council for approval, in order to study and draw up policies and measures to promote the healthy development of the self-employed.

Fifth, we have strengthened intellectual property rights (IPR) protection. We have stepped up IPR protection and set up a punitive damages system for IPR infringement to significantly increase the cost of infringement. We have also enhanced the protection of trade secrets by conducting trials nationwide, to protect the lawful rights and interests of enterprises.

Through ongoing reform and innovation, the average time taken to set up a business has been shortened from more than one month to within four working days. Meanwhile, the average time taken to cancel a market entity has been reduced from 100 days to 60 days. In addition, it now only takes around 20 days to deregister an enterprise through simplified procedures. The total number of market entities has reached 158 million, compared with 55 million in 2012, providing a solid micro-foundation for the stable, healthy and sustainable development of the economy. Next, the market regulation authorities will further advance reform of market access system, and improve business operating permission regulations and market exit system, so as to give better play to the role of underlying systems related to enterprises in keeping market expectations stable. We will also work hard to improve and implement supporting policies for enterprises, and study and improve the policy system for supporting self-employed individuals, so as to help ease the difficulties and support the healthy development of market entities.

Thank you.

Shou Xiaoli:

Thank you to the three speakers as well as friends from the media. Today's press conference ends here.

Translated and edited by Chen Xia, Zhou Jing, Zhang Rui, Wang Wei, Lin Liyao, Duan Yaying, Liu Sitong, Yuan Fang, Qin Qi, Mi Xingang, Huang Shan, Cui Can, Ma Yujia, Yang Xi, Wang Yiming, Zhang Jiaqi, Xu Xiaoxuan, Zhang Junmian, Zhu Bochen, Li Huiru, Wang Qian, Li Xiao, David Ball and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.