Licensing law -- driving force of China's administrative reform

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Last updated at: (Beijing Time) Saturday, February 07, 2004

Licensing law -- driving force of China's administrative reform

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China's Law on Administrative Licensing, the only stand-alone law of its kind in the world, has become a strong driving force of China's ongoing administrative reform to satisfy the demand of its market-oriented economy.

The law, which was approved by the National People's Congress (NPC) Standing Committee on Aug. 27 last year and will take effect on July 1 this year, is expected to play a vital role in introducing a "just and transparent, clean and efficient administrative system with standardized practice and good coordination" in China, experts said.

"Most officials who studied the law expressed their concerns on the possible disputes during its implementation if they carried on licensing as usual. They felt a big pressure to change," said Jiang Yaoping, director of the Department of Policy and Regulation Implementation in the Ministry of Information Industry.

According to Jiang, after studying the law in a meeting organized by the ministry, a department director immediately postponed his department meeting on the work in 2004 and said the meeting should be held after his colleagues studied the law.

In order to speed up the ongoing administrative reform, the Chinese government has attached great importance to the law's implementation.

The State Council held its first national meeting of 2004 on Jan. 6, and it was on implementing the new law and attended by ministers and governors. "It's rare to hold such a meeting at the beginning of a year, usually the busiest time for senior government officials. This showed how the central government valued the law," said Wang Yongqing, deputy director of the Legislative Affairs Office under the State Council.

At the meeting, Chinese Premier Wen Jiabao urged all government officials to study the new law carefully before its implementation.

"The implementation of this law is different from that of ordinary laws as it's a law involving administrative reform and shifting government's functions and protecting the interests of people," he said.

On Sept. 26, one month after passing the law, the State Council held an executive meeting to discuss its implementation. Two days later, the State Council issued a circular, urging all governments at various levels to study the law.

On Nov. 6, another State Council executive meeting was held to underline the importance of earnestly implementing the law and a lecture on the law was arranged for ministers after the meeting.

To help deal with the serious problem of red tape in the administrations, which has caused many complaints from common people, the Chinese government seven years ago started simplifying the administrative licensing procedures by drafting a new law on administrative licensing.

The law, which embodies the principle of rigorously restricting the power of government departments, is also believed to facilitate the country's uphill battle against corruption.

The law requires that government departments set up a special office issuing licenses collectively, so that applicants can avoid going to different places for the same administrative approval. Government departments should reply to any license application within 20 days to prevent any postponements being used to seek illicit profits.

"If the law is enforced strictly, the corruption that plagues China's administrative licensing sector can be greatly cut down," noted Wang.

The preparation for the law's implementation has drawn much attention from governments at various levels. All the ministries and provincial governments have established special offices to clean off all kinds of administrative licenses.

In addition, training programs have been planned to guarantee the smooth implementation of the law. The Legislative Affairs Office has trained 1,562 officials for the law's implementation and all the governments above county level are required to hold training programs on the law's implementation for officials.

All government officials must have a "big change" in their mind and management methods to satisfy the demand of the law, said Li Lianning, a member of the law Committee of the NPC.

"Those departments and officials who do not change their minds according to the law might face many unexpected legal disputes after the law's implementation on July 1," he warned.

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