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Read in Chinese
Speakers:
Mr. Luo Wen, minister of the State Administration for Market Regulation
Mr. Wang Jiangping, vice minister of industry and information technology
Mr. Hu Weilie, vice minister of justice
Ms. Cong Lin, vice minister of the National Financial Regulatory Administration
Chairperson:
Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
Oct. 14, 2024
Shou Xiaoli:
Ladies and gentlemen, good morning! Welcome to today's press conference organized by the State Council Information Office (SCIO). We are delighted to have Mr. Luo Wen, minister of the State Administration for Market Regulation (SAMR), to brief you on efforts to step up support for enterprises, and to answer your questions. We are also joined today by Mr. Wang Jiangping, vice minister of industry and information technology; Mr. Hu Weilie, vice minister of justice; and Ms. Cong Lin, vice minister of the National Financial Regulatory Administration (NFRA).
Now, I will give the floor to Mr. Luo Wen for his briefing.
Luo Wen:
Good morning, everyone. On Sept. 26, the Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting to outline a comprehensive package of incremental policies for the next stage of economic development. On Sept. 29, the State Council convened for a special meeting to discuss how these policies would be implemented. The decisions made by the CPC Central Committee and the State Council clearly demonstrate their dedication to addressing the concerns of businesses and invigorating the vitality of market entities. In line with these directives, I, along with my colleagues from the Ministry of Industry and Information Technology (MIIT), the Ministry of Justice (MOJ) and the NFRA, will present the specific policies and measures our departments have formulated to support businesses. We will also answer your questions. Let me elaborate on six key areas.
First, we will provide targeted support to various business entities. We aim to address the practical challenges faced by small and micro enterprises in their daily operations and continue to intensify targeted assistance for self-employed individuals. Efforts will be made to promote the coordinated development of platform companies and the businesses they host. We will soon introduce specific measures to guide platform companies in leveraging their user base for positive outcomes and in supporting the development of small and micro enterprises. Furthermore, we will actively help small and medium-sized enterprises (SMEs) that possess competitive advantages to enhance their capabilities for innovation and specialization, accelerating the high-quality development of innovative SMEs that use special and sophisticated technologies to produce novel and unique products, as well as "little giant" enterprises with high growth potential.
Second, we will effectively and significantly alleviate the burdens that businesses face. We are committed to reducing the cost of systemic transactions by advancing reforms designed to streamline how tasks are completed—from a cumbersome process requiring multiple locations, windows and visits to a simplified one that can be accomplished in a single location through a single window and in one visit. Special efforts will be made to lighten the load on businesses by focusing on both key entities that charge fees as well as critical industry sectors. This includes conducting targeted inspections and random checks on improper fee collection from businesses as well as expediting the process of refunding these fees to provide immediate financial relief to businesses. Moreover, we are dedicated to enhancing the ongoing regulatory mechanisms related to business fees, advocating for the revision of regulations that ensure timely payments to SMEs and rigorously protecting the legitimate rights and interests of businesses.
Third, we will foster a fair, competitive market environment. In response to local protectionism and market segmentation, we will roll out and implement more rigid and enforceable institutional measures. We will accelerate the revision of the Anti-Unfair Competition Law to prevent and deter unfair competitive practices. We are also committed to robustly enforcing the Fair Competition Review Regulations, eliminating policies and measures that undermine a unified market and fair competition. This will further unleash the potential of China's vast market scale. Additionally, we will intensively manage market order, specifically targeting illegal activities such as intellectual property infringement, the misappropriation of trade secrets as well as the production and sale of counterfeit goods. We will enhance the dynamism of business development by maintaining a well-ordered market.
Fourth, we will strengthen supportive resources for business entities. The NFRA will push financial institutions to increase their support for the real economy, quickly improving the mechanisms for coordinating financing support for small and micro enterprises, and helping to alleviate their funding challenges. The SAMR will collaborate with other departments to introduce innovative quality financing and credit enhancement policies, promoting mechanisms based on companies' technological capabilities and quality qualifications to improve the accessibility and convenience of financing for small businesses. The MIIT will actively provide SMEs with one-stop services, including talent acquisition, financing support and digital enablement, fully helping enterprises reduce costs, improve efficiency and enhance quality.
Fifth, we will firmly protect the legal rights of business entities. We are accelerating the implementation of a law on private sector promotion to guarantee equal treatment and protection for private enterprises, fostering an optimal environment for the growth of the non-public sector. We will effectively implement the Regulations on Optimizing the Business Environment, aiming to lift restrictions on the market while ensuring effective regulation. In response to issues like unfair market access barriers and restrictions on businesses relocating across regions, we will quickly develop and introduce effective measures that address the concerns of business entities. Additionally, we will conduct thorough evaluations and clean ups of legal and regulatory policies impacting businesses, eradicating any discrimination or differential treatment based on ownership, size or geographic location.
Lastly, we will standardize law enforcement and supervision related to businesses. The MOJ will strengthen oversight of administrative law enforcement concerning businesses, actively promoting strict, procedure-based, impartial and non-abusive law enforcement. We will address prominent issues in administrative law enforcement and improve communication mechanisms for handling business-related appeals. The process for handling administrative reconsideration cases involving businesses will be expedited. We will ensure that administrative agencies perform their duties in accordance with the law. The SAMR will accelerate the introduction of specific initiatives for service-oriented law enforcement. This will involve establishing standards for administrative actions and increasing the usage of flexible approaches such as warnings and guidance. Services will be incorporated throughout the entire regulatory and enforcement process to effectively guide businesses towards lawful and compliant operations.
This concludes my briefing. Thank you!
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Shou Xiaoli:
Thank you, Mr. Luo, for your briefing. We will now open the floor to questions. Please raise your hand and state the news outlet you represent before asking your questions.
Zhonghongwang.com:
Recently, it was stressed at a meeting of the Political Bureau of the CPC Central Committee that we should effectively implement existing policies while launching robust incremental policies. What policies and measures will the SAMR roll out soon to stimulate business entities' vitality while improving policies and measures to be more targeted and effective? Thank you.
Luo Wen:
Thank you for your question. The SAMR has always paid close attention to supporting business entities. In accordance with the central authorities' arrangements for implementing an incremental policy package, we will introduce policies and measures in the following four aspects:
First, we will guide platform companies in using their traffic to help merchants on the platform increase brand awareness and expand market transaction volume. We will issue opinions on guiding online marketplaces to positively leverage online traffic to support the development of micro-, small- and medium-sized businesses. We will encourage such platforms to allocate online traffic reasonably, focusing on three types of businesses: agricultural product operators, specialty businesses, and newly settled merchants. Additionally, platforms should leverage large-scale sales promotion activities to increase traffic for businesses, helping improve traffic utilization efficiency and management capabilities. This approach aims to fully stimulate businesses' internal drive and market vitality within the platform.
Second, we will promote the use of quality reputation as a basis for corporate financing. We'll push financial institutions to incorporate quality-related factors such as a company's quality capabilities, management quality, and brand quality into their credit approval and risk management models. In particular, financial institutions should design tailored financial products and services for micro-, small- and medium-sized enterprises, implementing differentiated arrangements in terms of credit limits, interest rates, financing terms, and repayment methods. This will improve the accessibility and convenience of financing for businesses. Together with equity, funds and bond-based financing tools, the country aims to generate a credit enhancement and financing quota of 300 billion yuan each year, which will benefit all enterprises.
Third, we will provide targeted assistance to self-employed individuals according to categories and types. As we know, most business entities in our country are self-employed individuals. As of the end of August, there were 125 million self-employed individuals, accounting for two-thirds of all business entities. Consequently, self-employed individuals play an important role in stabilizing employment, improving well-being, and boosting growth. The SAMR categorizes self-employed individuals into three stages and four types. The stages are survival, growth, and development, while the types are famous, special, outstanding and innovative. A unified national directory based on this classification will be established by year-end. Using this directory, we'll collaborate with relevant departments to launch targeted policies on tax, social security, employment and financing. This will enable local governments to offer tailored assistance to self-employed individuals for workspace, costs, training and recruitment.
Fourth, we will quickly develop and update key standards for equipment renewal and consumer goods trade-ins. Large-scale equipment renewals and consumer goods trade-ins can effectively boost investment and consumption, significantly increasing growth potential for enterprises. This year, the SAMR assigned 130 tasks regarding the formulation and revision of important standards relating to equipment renewal and consumer goods trade-ins. So far, 74 of them have been completed. Next, we'll implement actions to refine and accelerate standards development. We'll prioritize upgrading technical standards for energy use and emissions, improving product safety standards, and expanding standards for recycling. These efforts aim to promote equipment renewal and consumer goods trade-ins through enhanced standards.
These are the four major initiatives we plan to roll out to enhance the vitality of business entities. Thank you.
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Yicai:
The draft law on the promotion of the private sector is currently seeking public comments. It's believed to be a crucial step for boosting the confidence of private businesses. How does the MOJ think this law will impact the development environment for the private sector? Thank you.
Hu Weilie:
I'll answer this question. I appreciate the keen interest from both the media and the public in this law. Since the draft law was released for comment, the MOJ has received more than 1,000 ideas and suggestions. The formulation of this law is a decision and arrangement of the CPC Central Committee and the State Council. It was also a clear requirement made at the third plenary session of the 20th CPC Central Committee. As China's first fundamental law dedicated to boosting the private sector, it upholds Party leadership and the fundamental socialist economic systems. It commits to unswervingly consolidating and developing the public sector and unswervingly encouraging, supporting, and guiding the development of the non-public sector. This draft law incorporates approaches and policies for developing the private economy adopted by the CPC Central Committee and State Council since reform and opening-up began, especially after the 18th CPC National Congress, along with effective practices, into the legal system. The draft law enshrines equal treatment and protection for private businesses, aiming to establish a long-term mechanism that stabilizes development expectations for private enterprises and entrepreneurs while boosting the private sector. As a groundbreaking move, the draft law includes terms such as staying committed to unswervingly consolidating and developing the public sector, unswervingly encouraging, supporting, and guiding the development of the non-public sector, as well as cultivating and advocating entrepreneurship. It also clarifies that promoting the private sector's sustained, healthy and high-quality development is a persistent national policy. The draft law clearly indicates that boosting the private sector is a consistent and long-term Party and government policy. These contents, after being written into law, will provide a stable binding force to facilitate the sustained, healthy and high-quality development of the private sector and create a more beneficial environment for the common development of economic entities under all forms of ownership, including private ones.
In terms of market access, the draft law makes several clear stipulations. All types of economic organizations, including private ones, may operate in accordance with law and on an equal footing in fields not included in the negative lists for market access. The system for fair competition review should be implemented, and policies and measures must go through such review before being issued. Private economic organizations shouldn't be limited or excluded from bidding, government procurement and other public resource trading activities. These measures aim to promote fair competition with participation from private businesses.
In terms of sci-tech innovation, the draft explicitly supports the active participation of private sector in developing new quality productive forces, and encourages its participation in national sci-tech research projects. The draft also supports capable private enterprises and organizations in taking the lead in major technological breakthrough tasks, guarantees their participation in standard setting and the development and utilization of public data resources in accordance with the law, and strengthens the protection of their intellectual property rights.
In terms of investment and financing support, the draft focuses on optimizing the investment and financing environment for private sector, supporting the participation of private enterprises and organizations in national major strategies and major projects. Governments at all levels and their departments are required to facilitate the promotion and connection of investment projects, supporting private enterprises and organizations in revitalizing existing assets and enhancing reinvestment capabilities. The draft also supports financial institutions in developing financial products and services tailored to private economic entities, providing them with rights-based pledged loans. Differentiated supervision is implemented for financial institutions providing financial services to micro- and small-sized private enterprises, allowing for a reasonable tolerance for non-performing loans. The establishment of a market-based risk-sharing mechanism for financing private enterprises and organizations is also promoted.
In terms of operation regulations, the draft imposes requirements on private sector to operate in accordance with the law, proactively integrate into national strategies, actively fulfill its social responsibilities, and serve the economic and social development with private capital. These measures will better ensure the stable and far-reaching development of private enterprises within the legal framework, promote the development of the private sector, and facilitate the growth of individuals within the private sector.
In terms of service guarantees and rights protection, the draft strengthens the supervision of administrative law enforcement, standardizes enforcement inspection procedures, and stipulates that administrative penalties must be commensurate with the facts, nature, circumstances and degree of social harm of the violations. It requires that any restrictions on personal freedom must be in accordance with statutory powers, conditions and procedures. No exceeding of powers, scope, amounts, time limits for sealing, seizure or freezing of property is allowed. Unlawfully intervening in economic disputes through administrative or criminal means is prohibited. Firm measures have been taken to curb arbitrary fines, inspections and seizures. These provisions establish basic principles of the rule of law and legal compliance for law enforcement and supervision involving enterprises, further optimizing the legal environment for doing business, enabling private enterprises and entrepreneurs to do business and develop with peace of mind.
That's all from me. Thank you.
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Phoenix TV:
Micro- and small-sized enterprises are crucial for stabilizing the economy, expanding employment and improving people's livelihoods. Could you please elaborate on the measures taken by the NFRA to assist enterprises in difficulty and alleviate financing challenges for micro- and small-sized business entities? Thank you.
Cong Lin:
Thank you for your question. Micro- and small-sized enterprises are closely connected to countless households. I appreciate your attention to the financial work concerning these enterprises. In accordance with the decisions and deployments of the CPC Central Committee and the State Council, especially following the guiding principles of the meeting of the Political Bureau of the CPC Central Committee on Sept. 26, we have been guiding financial institutions to increase financial support to the real economy and optimize financial services for various types of business entities. Recently, we have introduced a series of measures focused on supporting enterprises. The key aim of these measures is to address the financing bottlenecks and obstacles for micro- and small-sized enterprises, optimize the business environment, facilitate financing channels, and strive to maintain quality services while offering more competitive pricing.
Let me start by presenting a set of financial data. Overall, the supply of credit has been steadily increasing. By the end of August, the balance of RMB loans had reached 252.02 trillion yuan, an increase of 8.5% year on year. Insurance companies provided various financing support totaling 28.8 trillion yuan through bonds, stocks and other means. In terms of structure, support for key areas continues to increase. Loans to inclusive micro- and small-sized enterprises grew by 16.1% year on year, while loans to private enterprises increased by 9%. Regarding the price, interest rates have remained stable with a slight decline. From January to August this year, the interest rate on newly issued loans to inclusive micro- and small-sized enterprises decreased by 0.4% compared to the same period last year.
Here are some specific measures:
First, optimizing the policy of loan renewals without principal repayment to ease cash flow pressures for businesses. This policy not only applies to micro- and small-sized enterprises but has also temporarily been expanded to medium-sized enterprises. It should be emphasized that eligible renewal loans should not have their risk classification downgraded solely due to the renewal process. Banks need to enhance risk management, taking into account factors such as the borrower's repayment capacity and collateral, to appropriately classify the risk associated with each renewal loan.
Second, collaborating with the National Development and Reform Commission (NDRC) to establish a financing coordination mechanism to support micro- and small-sized enterprises. The core of this mechanism involves setting up specialized teams at the district and county levels to facilitate precise communication between banks and enterprises. On the enterprise side, a comprehensive understanding of the actual business operations within the jurisdiction will be obtained to achieve targeted assistance and effectively address the financing challenges faced by enterprises. On the bank side, obstacles and bottlenecks in information and fund transmission will be cleared. The goal is to ensure that legally compliant enterprises with genuine financing needs and good credit standing can access the financing they need through this mechanism. Moreover, the funds are direct without intermediaries, and the financing costs are reasonable.
Third, further leveraging the protective role of insurance. In areas such as construction projects and foreign trade exports, the substitution of deposits with performance guarantee insurance and tariff guarantee insurance is encouraged. In the first half of the year, this measure has freed up capital for 520,000 companies, reducing their financial pressure on cash flow. Additionally, export credit insurance companies are encouraged in providing comprehensive financial services such as "credit guarantee + policy financing" to address the concerns of exporters.
Fourth, improving the liability exemption system. We all know that the key to enhancing financial services for micro and small enterprises is to relieve the burden on primary-level lending personnel and foster a positive atmosphere that encourages responsibility among them while ensuring that they will be exempt from liability under the purview of due diligence. Recently, we further revised the original notice about the liability exemption mechanism for inclusive lending, clarifying various exemption situations. For personnel who basically fulfill their job responsibilities and only make minor mistakes, their liability will be reduced or exempted. We learned that many banks have already refined and improved their internal regulations according to regulatory requirements, and the number and proportion of exemptions have increased.
In addition, our regulatory work will be more targeted. Under the premise of law-based and comprehensive regulation, we will adopt more flexible and inclusive regulatory measures, such as policy guidance, risk alerts and prompts for corrective action, to address general and operational risks in inclusive finance, particularly in services for micro and small enterprises. This approach integrates regulation with service. With this more humane approach, we aim to enhance the enthusiasm and proactivity of financial institutions to implement support policies, thereby creating a favorable environment for business development.
That's all from me. Thank you.
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Beijing Youth Daily:
Arbitrary fees imposed on enterprises not only increase their burden but also harm the business environment. What steps will be taken to address the issue of illegal charges on enterprises, in order to alleviate their burden while also protecting their legal rights and interests? Thank you.
Luo Wen:
Thank you. I will answer this question. Recently, the SAMR has intensified its enforcement efforts against illegal charges on businesses, aiming to genuinely help alleviate the burden on enterprises.
First, we will resolutely prohibit the illegal establishment of fee items. We will call on government departments, affiliated units and industry associations to ensure that policy documents related to fees have a legal basis. Any documents found to lack legal justification during inspections will be promptly revised or abolished. For charging entities like financial institutions, and utilities such as water, electricity, gas and heating, we will enhance inspections and random checks to firmly address issues such as double charging and compulsory fees. We will improve the directory of all enterprise-related fees, and fully disclose fee items, bases and standards. Any charges not included in the directory will be strictly prohibited.
Second, we will increase punishments for arbitrary charging practices. For administrative agencies, public institutions and social organizations with the function of public affairs management, and organizations with dominant positions in specific fields, we will comprehensively employ market regulation, industry regulation and credit supervision to strengthen penalties for such behaviors and make public major cases that have garnered strong social response. We will enhance the publicity and interpretation of typical cases, clarifying laws and regulations through these examples, helping fee-paying enterprises to understand fee policies while ensuring charging entities adhere to policy boundaries, thus fully utilizing social supervision. We will strengthen coordination of administrative enforcement of law and discipline, and promptly transfer evidence of disciplinary offences according to procedures.
Third, we will strengthen the legal safeguards for regulating enterprise-related fees. Taking the revision of the Price Law as an opportunity, we will clarify the legal requirements related to fee management for state organs and public institutions. We will promote the formulation of the Measures for Handling Irregular Charges on Enterprises, detailing the standards for identifying such violations and increasing administrative penalties. We will expedite revisions and improvements to the enforcement and compliance guidelines for enterprise-related fees across various sectors, solidifying the legal foundation for regulating fees. Additionally, we will enhance the implementation of the Compliance Guidelines for Charging Behaviors of Industry Associations and Chambers of Commerce to further regulate the charging practices of social organizations and optimize the business environment.
Fourth, we will improve the long-term regulatory mechanism for enterprise-related fees. We will address arbitrary charging issues at the source, exploring the establishment of a compliance review system for fee-related policy documents. We will enhance the scrutiny of these documents to effectively address issues that policies may impose additional payment obligations on enterprises and increase their burden. We will improve the regular mechanism for collecting evidence of such issues and set up monitoring points for enterprise-related fees, fully leveraging their role as the "outpost" in combating arbitrary charges. At the same time, we will work out innovative regulatory methods, and improve approaches such as reminders, enforcement orders, consultations and supervisory directives to ensure that arbitrary charging issues are adequately rectified.
That is all from me. Thank you.
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Jimu News:
Innovative SMEs that use special and sophisticated technologies to produce novel and unique products have garnered significant attention. What measures can we expect in the future to further cultivate such enterprises? Thank you.
Wang Jiangping:
Thank you for your interest in these innovative SMEs that use special and sophisticated technologies to produce novel and unique products. Supporting the development of SMEs is a long-term strategy of our country. As the comprehensive management department of the State Council responsible for supporting SMEs, the MIIT has always encouraged the development of innovative enterprises that use special and sophisticated technologies to produce novel and unique products, and has been progressively cultivating high-quality SMEs. Currently, China has 141,000 such innovative SMEs, including 14,600 "little giant" enterprises, which play a significant role in promoting new industrialization and developing new quality productive forces. Next, the MIIT will work with relevant departments to establish a mechanism that promotes the growth and development of such innovative SMEs, improving the full-cycle cultivation system of "selection, nurturing and excellence" to facilitate their high-quality development.
In terms of technological innovation, we have collaborated with the Ministry of Finance to launch a new round of support policies for these innovative enterprises. This year, with financial support from the central government, we will assist over 1,000 key "little giant" enterprises in creating new momentum, tackling new technologies, developing new products, and strengthening the supporting capabilities of the industrial chain. Through special re-lending projects, we will support the technological transformation and equipment updates of more than 1,100 "little giant" enterprises. We have released a directory of pilot service resources for SMEs, prioritizing support for "little giant" enterprises to participate in application plans for key products and processes. We have implemented a plan to promote the industrialization of patents as part of the efforts to support the growth of SMEs, providing services related to intellectual property, such as rapid pre-examination and rights confirmation, for eligible innovative SMEs that use special and sophisticated technologies to produce novel and unique products.
In terms of digital transformation, we have selected the second batch of pilot cities for SMEs' digitalization, which will be backed by central government funds worth 2.7 billion yuan and local government investment funds that are worth more than 12 billion yuan. Next year, another batch of pilot cities will be chosen to help over 40,000 SMEs across the country achieve digitalization.
In terms of financial support, the MIIT will work with China Securities Regulatory Commission (CSRC) to launch the third batch of dedicated boards in regional equity markets for SMEs that use specialized and sophisticated technologies to produce novel and unique products. We are set to sign a strategic cooperation agreement with the Beijing Stock Exchange to further expand channels to finance these enterprises. We are going to focus on key industrial chains with relevant departments to carry out a national campaign for the financial promotion of SMEs, targeting designated chains in different months and directly linking SMEs with financial institutions.
In terms of services and guarantees, we encourage "little giant" enterprises to set up postdoctoral research stations, give senior ranking personnel the right to provide recommendations and support SMEs that use specialized and sophisticated technologies to produce novel and unique products, so as to pilot senior professional titles' independent evaluations in these enterprises. They are also provided with preferential policies on aspects including registering permanent residencies, housing and children's education for talents. We have established SME service networks at the national, provincial, city and county levels, gathering more than 1,780 public service institutions to resolve the "last-mile" problem on policy, technology, management and service resources. Thank you!
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Bloomberg:
In recent years, the numbers of new startups and unicorn enterprises have decreased while the venture capital industry has also faced various challenges. How do you plan to foster more unicorn firms and what are the biggest obstacles? Thank you.
Wang Jiangping:
Thank you for your questions. As representative enterprises for a new economy, new business form and new model, unicorn companies have become a new asset in fostering new quality productive forces by featuring fast development speeds and high growth rates. In recent years, a number of super unicorn companies have emerged in China, with unicorn firms continuously increasing and their comprehensive capacities greatly improving. At present, Chinese unicorn enterprises are not only stationed in Beijing, Shanghai, Hangzhou, Guangzhou and Shenzhen, but also nestled in Chongqing, Tianjin, Chengdu, Changsha, Wuhan and other cities, showcasing an emerging trend of diversified development. In recent years, unicorn enterprises from high-end manufacturing, consumer and retail, high-tech and other related fields have accounted for more than 78% of the total volume, and more than half of last year's new unicorn enterprises came from hard technology sectors such as new energy, artificial intelligence and semiconductors.
The growth of unicorn enterprises on the one hand depends on their own technological strengths, while, on the other hand, requires a favorable business environment. Next, the MIIT will take the following measures to boost the growth of such firms. First, a unified national cultivation system for unicorn enterprises will be established, with coordination between state organs and provincial governments. Second, technological innovation will be pushed and unicorn firms will be guided in carrying out scientific research on the basis of national strategic needs and to achieve remarkable results. Third, financial support like industry and financing cooperation platforms will be given full play to help unicorn enterprises go public, merge and reorganize. Fourth, future-oriented industries, including atomic-level manufacturing, brain-computer interface and 6G will be boosted with forward-looking plans, promoting the development of unicorn enterprises. Fifth, unicorn enterprises will be supported to join the global innovation network and conduct innovative cooperation. We warmly welcome international innovation teams to start businesses in China as well as welcome foreign capital to invest in unicorn enterprises in China. We are ready to share with the rest of the world China's development opportunities with entrepreneurship and innovation. Thank you!
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Red Star News:
Currently, improper behaviors still exist in enterprise-related law enforcement, and some administrative law enforcement personnels act inappropriately and even rudely. What measures will the MOJ take to intensify the supervision of enterprise-related administrative law enforcement, build law-enforcement capacity and correct wrongdoing according to the law? Thank you.
Hu Weilie:
Thank you for your question. Regarding prominent problems with administrative law enforcement, the MOJ will give full play to the functions of inspecting the rule of law, coordinating and supervising administrative law enforcement as well as administrative reconsideration, and will work with relevant departments to form synergy and intensify oversight to comprehensively improve the quality and efficiency of law enforcement.
We will make great efforts to address prominent problems frequently complained about by enterprises and the public, including irresponsible and neglectful administrative law enforcement. Recently, the Commission for Overall Law-based Governance under the CPC Central Committee launched enforcement inspections targeting the law-based business environment. The MOJ and relevant departments currently are conducting a special nationwide inspection campaign that focuses on rectifying wrongdoing such as disturbing business operations with law enforcement or law enforcement for the purpose of increasing revenue. Relevant government organs will be asked to push forward rectifications to further increasing people's sense of satisfaction. We will release a batch of administrative law enforcement supervision cases soon to guide judicial and administrative organs at all levels with intensifying enterprise-related law enforcement oversight.
We will make great efforts to improve business-related inspections. We have recently noticed that during the process of soliciting public opinion on draft law on private sector promotion, enterprises complained a lot about overly frequent, arbitrary and repeated inspections, which disturbed the enterprises' normal operations. With the current special oversight, we have made administrative inspections a priority, and have made more efforts to rectify and standardize irregular and excessive inspections. Typical cases will be made known after the enforcement inspection to strengthen supervision on improvements. Looking forward, we will formulate relevant regulations, improve management and procedures with administrative inspection and will guide law enforcement authorities at all levels to initiate tiered and classified inspections. By doing so, the rigid constraints of abolishing irregular and excessive inspections will be strengthened by institutions. At the same time, a national information system on integrated management and supervision for administrative law enforcement will be accelerated to govern such procedures through the use of information technology.
We will comprehensively strengthen supervision over fines. We will standardize the setting and implementation of fines in accordance with the law, and resolutely prevent the use of fines to increase income or take the place of governance. We will vigorously promote the establishment of a system of standards across various regions and relevant departments on administrative discretion for matters such as administrative penalties and administrative inspections, so as to effectively solve the problem of inconsistent and uncoordinated law enforcement standards.
We will encourage law enforcement departments at all levels to establish and improve the economic impact assessment system for enterprise-related law enforcement, so as to minimize the negative impact of administrative law enforcement activities on the normal production and operation of enterprises. When administrative departments file a case, investigate, take coercive measures such as sealing, sequestering, and freezing of assets, or impose major administrative penalties on an enterprise involved in a case, they are required to conduct a comprehensive study into the possible impact on the enterprise's production and operation activities, and undertake targeted prevention and response measures.
We will strengthen communication mechanisms for business-related law enforcement and form a joint force for supervision. This includes establishing comprehensive information-sharing and cooperation mechanisms between administrative law enforcement supervision and channels like the 12345 government service hotline and online media. We will implement an enterprise contact system for administrative law enforcement supervision, collect and coordinate information on law enforcement violations related to enterprises, and ensure relevant law enforcement departments promptly correct issues.
We will improve the system for managing administrative law enforcement personnel and improve their quality and abilities. This includes clarifying qualification requirements for administrative law enforcement personnel and ensuring strict entry standards. We will issue guidelines on non-abusive law enforcement for law enforcement personnel, guide law enforcement personnel to carry out law enforcement activities in a non-abusive way, and conduct training for administrative law enforcement personnel in different levels and categories. We will strictly implement the responsibility system for administrative law enforcement, and promptly transfer any evidence discovered about violations of disciplines and laws by law enforcement personnel to the disciplinary inspection and supervision authorities. That's all from me. Thank you.
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CCTV:
The meeting of the Political Bureau of the CPC Central Committee pointed out that in order to help enterprises navigate difficulties, it is necessary to further standardize the law enforcement and regulatory behaviors related to enterprises. What other targeted measures will the SAMR take in regulating law enforcement and supervision of enterprises? Thank you.
Luo Wen:
Thank you for your question. The SAMR will soon release the Guiding Opinions on Firmly Establishing the Concept of Supervision for the People and Promoting Service-Oriented Law Enforcement and the Code of Conduct for Market Supervision and Law Enforcement. These will further standardize law enforcement and supervision behavior from the following four aspects:
First, we will refine the standards for administrative discretion and proportional punishment. We will improve the system for the discretion of administrative penalties in market regulation, promote the alignment of administrative law enforcement standards across regions, implement a guiding case system, and promote the unification of law enforcement standards. Minor violations of the law will be exempted from punishment or given lighter or mitigated punishments. However, those who endanger the lives and health of the people and the safety of property, harm the public interest, challenge the moral bottom line and cause significant social impact, shall be severely punished in accordance with the law.
Second, we will optimize law enforcement methods to reflect a more considerate approach. By using reasoning-based law enforcement documents and language, we aim to clearly explain the facts of the violation, the basis for punishment and the available remedies to the parties involved, and strive to gain their understanding and cooperation. We will improve the law enforcement that combines punishment with education, and adhere to the principle of popularizing legal knowledge in advance, reasoning during the incident and resolving doubts afterward. We will establish mechanisms for post-case guidance, rectification checks and assistance for difficulties, so as to encourage the parties concerned to comply with decisions and correct illegal behaviors.
Third, we will standardize routine supervision to avoid unnecessary disturbances. We will fully implement practices such as the random selection of inspectors and inspection targets, and the prompt release of results. By using databases of inspection targets and law enforcement inspection personnel, we will randomly select inspection objects, randomly select inspectors, and ensure no repetitive, overlapping or excessive inspections. We will strengthen categorized credit risk management for enterprises, scientifically apply risk levels, and reasonably determine and dynamically adjust the proportions and frequency of inspections. Enterprises maintaining good credit will be left undisturbed. We will also accelerate the promotion of cross-departmental comprehensive supervision and joint inspections, aim to achieve "multiple checks during a single visit," so as to truly reduce the burden on enterprises.
Fourth, we will enhance legal education services and promote enterprise self-discipline. We will take legal education as the prerequisite and basis for supervision and law enforcement. We will take the prevention of illegal acts and serving the healthy development of business entities as important tasks of legal supervision. And we will make better use of the legal education and administrative guidance to help enterprises correct deviations and prevent mistakes. In addition, enterprises will be encouraged to strengthen compliance capacity, increase awareness of integrity and abiding by the law, and enhance their capabilities to operate in accordance with laws and regulations. It is necessary to conduct in-depth analysis and assessments on issues that signal unfavorable trends and potentials in individual cases. We will promptly remind, warn and urge similar enterprises, and promote enterprises to consciously operate in accordance with laws. Thank you.
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Guangming Daily:
We have noticed that some industrial enterprises are currently facing issues such as insufficient orders. As the industry's governing body, what considerations and specific measures are the MIIT taking to help enterprises expand markets and boost domestic demand? Thank you.
Wang Jiangping:
In the fourth quarter, the MIIT will work with relevant departments to launch a number of specific measures to promote consumption and expand domestic demand to help enterprises expand markets and unleash their potential.
First, we will focus on the leading role of investment and implement technological transformation and equipment upgrading projects. We will expedite the approval and funding for projects supported by ultra-long-term special treasury bonds, and accelerate the issuance of 150 billion yuan in relending loans for technological transformation that have been signed. In the coming period, we will recommend a new batch of special relending projects to banks, and plan in advance the pilot cities for manufacturing technological transformation in 2025. We will organize reserve projects in the industrial field to start construction and create more physical workload as soon as possible. Currently, there are about 36,000 projects under construction or set to start within the year in the industrial sector, which are expected to drive over 11 trillion yuan in investment over the next three years.
Second, to expand consumption, we will organize a series of initiatives to improve supply and promote upgrading. First, we will promote the trade-in of consumer goods. To facilitate the trade-in of electric bikes, we have formulated and implemented mandatory national standards for lithium batteries, chargers and electrical safety, and have published a list of 31 qualified electric bike companies in two batches. Second, we will intensify the promotion of new energy vehicles. By the end of this year, we will continue to hold dedicated events to promote new energy vehicles in rural areas while expanding charging infrastructure in these areas. We will also designate additional pilot cities for the full electrification of public-sector vehicles. Third, we will initiate a matrix of renowned Chinese consumer goods, selecting and establishing a thousand products across three categories: historical classics, contemporary premium items and trendsetting products. We will launch the first batch of 100 globally recognized brands and organize global promotional activities. Fourth, we will establish specialty food production hubs nationwide, improve supply and promote upgrading in the textile and apparel sectors, and conduct national events such as the "Foodie Festival," under an initiative to increase product variety, improve quality and strengthen brand-building.
Third, we will deepen scenario applications and foster new quality productive forces such as low-altitude economy and intelligent manufacturing. With a focus on building a low-altitude industrial ecosystem, we will support regions with abundant airspace resources and diverse application scenarios to take the lead in piloting initiatives. Tailored to local conditions, we will create a demonstration system for multi-scenario low-altitude applications, advance new consumption formats like low-altitude logistics, urban and intercity air transport and low-altitude cultural tourism, and expand new models such as agricultural and forestry plant protection, inspection and patrol, and emergency rescue, creating a new engine for economic growth. We will issue guidelines to drive innovation in future industries, vigorously developing new areas such as humanoid robots, brain-computer interfaces and 6G. In addition, we will support enterprises in upgrading intelligent manufacturing, focusing on the application of intelligent manufacturing technology in typical industries and fostering a tiered development of intelligent factories at basic, advanced, excellent and leading levels.
That's all I have to say. Thank you!
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Shou Xiaoli:
In the interest of time, last question.
China Banking and Insurance News:
In light of difficulties with financing and high costs that are faced by small and micro enterprises, a coordination mechanism to support their financing has recently been established. Could you share some specific arrangements for this mechanism. Thank you!
Cong Lin:
Thank you for the question. Small and micro enterprises play a significant role in driving the economy, creating jobs and improving livelihoods. Drawing on thorough research and the experiences of relevant mechanisms, the NFRA has taken the initiative to establish a coordination mechanism to support financing for small and micro enterprises. This mechanism aims to leverage the advantages of the Party's leadership and the institutional framework of socialism with Chinese characteristics, strengthen coordination between central and local governments, tackles both the challenges small and micro enterprises face in securing financing and the difficulties banks encounter in lending to them. We will soon hold a dedicated meeting to outline the plans. Let me introduce the mechanism from three dimensions: who will take the lead, how it will be implement and what goals will be achieved.
First is the question of "who will take the lead." At the national level, the NFRA and the NDRC will spearhead efforts, working together with relevant government departments and banking institutions. The NFRA and the NDRC will focus on overall coordination and scheduling, aligning industrial, fiscal and taxation and financial policies to create a multiplier effect through policy synergy. At the local level, provinces, cities, districts and counties should establish corresponding working mechanisms, refine plans according to local conditions, and ensure effective implementation of various tasks. Especially at the district and county level, dedicated task forces should be set up to conduct enterprise visits, assess their needs, and recommend financing options. On the banking side, similar task forces will be set up to mobilize internal resources, encourage local-level institutions to lend proactively, and promptly address the financing needs of small and micro enterprises.
Second is the question of "how it will be implemented." Districts and counties, given their close ties to the grassroots level, have the deepest understanding of enterprises and serve as the driving forces and basic units for ensuring the mechanism is effectively implemented. Therefore, the task forces at the district and county level should act as bridges, connecting enterprises and banks. They should organize relevant departments, urban subdistricts, towns and townships as well as banking institutions to conduct visits. Specifically this involves assessing the operating conditions and financing needs of small and micro enterprises, explaining supportive policies, reducing discrepancies between policy intentions and enterprises' perceptions, and referring eligible small and micro enterprises to banks. The banks, in return, will make credit decisions based on market-oriented and legal principles as well as their own credit approval criteria, thereby providing financial support to the enterprises. In summary, the requirements are clear and simple: As long as small and micro enterprises operate in compliance and continuity, have a fixed place of business, are in sound operating condition, have genuine financing needs and intend to use loans for compliant purposes, they can access the funding needed for growth through this mechanism.
Finally, there is the question of "what goals will be achieved." We hope to achieve the following three goals: First, direct access to the grassroots level. Low-cost credit funds should directly reach the grassroots, eliminating any final barriers to benefiting enterprises and the public. Second, efficiency and convenience. Banks should, in principle, decide on credit approval within one month. For eligible enterprises, banks should establish green channels, optimize procedures and expedite processing. Third, reasonable interest rates. By reducing the cost of information gathering, cutting down on intermediary steps and lowering lending costs and additional fees, we aim to reduce the overall financing costs for small and micro enterprises.
That's all for my answer. Thank you!
Shou Xiaoli:
Thank you, Mr. Luo Wen. Thank you to the other speakers, and thank you to all the journalists for your participation. This concludes today's press conference. Goodbye!
Translated and edited by Wang Yiming, Wang Qian, Liu Sitong, Chen Xinyan, Wang Xingguang, Lin Liyao, Wang Yanfang, Yan Xiaoqing, Huang Shan, Wang Ziteng, Liu Qiang, Li Huiru, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
