The reform of separating operation permits from business licenses, an important measure taken by the Communist Party of China Central Committee and the State Council to streamline government functions and improve the business environment, has made progress in its first stage, with governance efficiency enhanced and business entities enjoying greater convenience.

To break down barriers to industry access and facilitate the entry and growth of market entities, the 28th Session of the 13th National People’s Congress (NPC) Standing Committee approved a decision on authorizing the State Council to temporarily adjust the application of relevant laws and regulations in pilot free trade zones (FTZs) in the country on April 29, 2021. The adjustment will be valid for three years, according to the decision.

Since the launch of the reform, relevant departments around the country have effectively reduced and simplified administrative approvals, optimized approval services, and basically established simple, efficient, fair and transparent rules for business operation licensing, according to a recent interim report submitted by the State Council to the NPC standing committee for deliberation.

It said that relevant departments under the State Council and FTZs administrations around the country have focused on cracking “hard nut” problems in launching business operations, regulating administrative examination and approval procedures by adhering to law-based thinking and simplifying administrative procedures in an innovative way.

Evaluations and investigations on the pilot reform found that FTZs administrations and market entities generally agree that the reform has promoted the upgrading of digital administration in government departments, improved administrative efficiency and brought greater convenience to market players.

The growth of market entities is gaining new momentum. A total of 991,000 enterprises have been established in the nation's FTZs since July 2021, with 506,000 of them beneficiaries of the reform, according to the report.