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SCIO briefing about Opinions on Refining the National Market Access System

China.org.cn | September 25, 2024

Xing Huina: 

Now, you may raise your hand to ask questions. Please identify the news organization you represent before asking.

CCTV:

We have noticed that the opinions lay out clear requirements for enhancing the negative list management model concerning market access. Could you share the key considerations behind this? What is the current progress on revising the updated edition of the market access negative list? Thank you.

Li Chunlin:

Thank you for the questions from the CCTV reporter. I am very glad to answer these questions. The market access negative list system and the revision of the list have attracted close attention from society. The negative list for market access clearly outlines sectors, fields and businesses that are off limit for investors and items which require government approval for market entry in our country. Governments at all levels take corresponding management measures in accordance with the law for matters involving market access. All types of business entities can fairly enter the sectors, fields and businesses not on the list in accordance with the law. Since the full implementation of the market access negative list system in 2018, the negative list has continued to shorten. As I mentioned, it has been reduced from 151 items to 117 items. The benefits of reform continue to increase with the list having undergone four dynamic revisions. The items have been reduced by about 60% compared with the pilot version. A large number of market entry restrictions in many fields such as elderly care and medical care have been loosened. Various market entities have more vitality and greater space to develop the economy and create wealth, so that the decisive role of the market in allocating resources can be fully exerted. At the same time, with the full implementation of the list, some new difficulties have also emerged. For example, the rules and standards for the establishment and adjustment of access measures are not sound enough, and there are still many barriers of various types at all levels to market access. The opinions adhere to a problem-oriented approach and make corresponding institutional arrangements.

In terms of improving "one list nationwide" management for market access, the opinions clearly state that all types of national access catalogs that have been compiled according to requirements, as well as industrial, investment, environmental and territorial space plans and other matters involving market access, shall be included in the negative list management. The national access system shall be promoted to strengthen integration and connection, intensify system integration and strive to achieve horizontal and vertical coverage. At the same time, the opinions state that it is strictly prohibited to establish access permits and add access conditions in breach of regulations and independently formulate negative lists for market access beyond the national negative list, or set up access barriers in the process of franchising, designated operation, testing and certification in violation of rules. In recent years, the NDRC has worked with relevant departments to clean up and cancel more than 20 negative lists related to market access set up in violation of regulations in various places, and the institutional rigidity has been continuously enhanced.

In terms of improving rules for market access, the opinions, for the first time, categorize and clarify the corresponding access rules according to the nature of different sectors and fields. For fully competitive fields, we implement wide access and strict management, and significantly reduce access restrictions. For fields involving national security, lifeblood of the national economy, layout of major productive forces, strategic resources development and major public interests, access restrictions can be set, but they must be carried out in accordance with laws and regulations. For new forms of businesses and new sectors, we respect the characteristics of their development, plan corresponding access systems in a forward-looking manner and better promote the development of new quality productive forces. For example, during the revision of the negative list for market access in recent years, a number of management measures, such as qualification licensing of firefighting technical service organizations, issuance of security training permits and permits for the establishment of nursing homes, have been canceled in succession. At the same time, access management is also implemented for important sectors such as financial holding companies in accordance with the law, which exemplifies this concept. 

In terms of improving the adjustment procedures for market access measures, the opinions detail specific requirements such as prohibition of entry and permission for access, as well as further propose that before adding or adjusting market access management measures the competent authorities should first conduct policy assessments and then apply for amendments to laws and regulations in accordance with legal procedures. Temporary access measures may be taken when major sudden risks to economic operation may occur, but they must be reported to the CPC Central Committee and the State Council for approval, which effectively strengthens the sanctity of the setting and adjustment of access policies. This also avoids the situation where individual departments or localities arbitrarily stop market access in certain areas, which is conducive to stabilizing market expectations.

These latest requirements put forward in the opinions have clarified the direction for the subsequent adjustment and implementation of the negative list for market access. Regarding the revision of the negative list for market access, the NDRC is currently working with the Ministry of Commerce, the SAMR and other relevant departments to promote the revision of the list in an orderly manner. The revised version has been formed and will be issued and implemented after approval in accordance with the prescribed procedures. The new version of the list will fully implement the requirements of the opinions as well as closely connect with the reform of the administrative approval system, the reform separating operation permits from business licenses and the new round of institutional reforms, promoting further reduction of items on the list and releasing more reform momentum for high-quality development. Thank you.

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