Companies and Government to Go Their Own WaysProfessional service companies such as law offices and certified public accountant's offices will have to sever their ties with government departments before October 31 this year, a senior Chinese official said in Beijing Thursday.This is one of the most important State Council requirements to sort out and reorganize the country's professional service industry, said assistant finance minister Li Yong. "There will be a firewall between the staff of professional service companies and government bodies, and companies will no longer be included in the budgets of government departments," Li said. The move is aimed at ensuring that the work of service providers such as attorneys and certified public accountants is independent and unbiased. Meanwhile, professional service companies which do similar business will be required to merge to make larger ones, Li said. The former China Association of Certified Asset Appraisal Agents, the China Association of Certified Taxation Agents and China Association of Certified Public Accountants have already merged. They are now all under the supervision of the China Association of Certified Public Accountants. Central government officials are considering merging the real estate appraisal agents association with the land appraisal agents association as well, Li said. Other professional service companies will be required to standardize their operations or even stop operating. Reorganization of the professional services industry is required to improve the Chinese market economy, said Xiang Huaicheng, minister of finance. "A regularized professional service industry will play an important role in maintaining the country's economic order and improving economic efficiency under a market economy," Xiang said. China's professional service industry has developed rapidly in the past 20 years, and involves 20,000 professional companies and 200,000 professionals. These companies and professionals have made a large contribution toward safeguarding the country's sound economic development. However, some government departments have in the past, used their power to influence the work of professional service companies, going against the principals of fairness and objectivity. Meanwhile, some government departments have set up several professional service companies to pursue economic benefits. "The reorganization of the professional service industry will help improve the quality of professionals and the self-management system within the industry," Li Yong said. The reorganization will also help professional service companies increase competitiveness after China enters the World Trade Organization, Li said. (Chinadaily) |
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