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Business / Economy

South China's Guangdong keeps it simple for growth

By Xu Jingxi (China Daily) Updated: 2015-02-28 10:22

The number of enterprises registered in Guangdong has soared since the province became the test area for commercial registration system reform in 2012. Nearly 1.2 million enterprises registered between January and November last year, the most of any province or autonomous region in the country. Total registered capital increased 143.4 percent year-on-year.

"We relaxed the examination and approval process before issuing business licenses to make it easer for a new player to enter the market. But it is important to tighten supervision at the same time," said Zhang Zhiyun, an official in charge of commercial registration at Dongguan's administration for industry and commerce.

To improve supervision, the Dongguan government created an online platform for more than 20 departments - including industry and commerce, tax and quality supervision - to pool the results of their monitoring of illegal activity.

By reforming the administrative examination and approval system, the government is delivering the message to the public that "the government is a public servant instead of a power holder", said Zheng Canru, head of Nanhai district, Foshan.

'Negative list' a positive factor by Li Wenfang, China Daily

The Guangdong provincial government has issued a "negative list" covering investment access by domestic companies, becoming the first province in the country to apply such a list.

"Negative lists" specify areas in which activity is limited or prohibited.

Along with that list, a compilation of items necessary for government approval and supervision in investment by domestic companies were also released on Feb 17, Li Chunhong, director of the provincial development and reform commission, told a news conference on Friday.

He said Guangdong has assumed the role of building up one to two years of experience that will be used for a future unified market access "negative list" to be applied across the country.

With the provincial economy experiencing the "new normal" conditions, it is urgent to push forward reform in the administration of corporate investment to spur investor dynamism, he added.

The reforms will also facilitate the decisive role of the market in allocating resources and improve the role of the government.

A "negative list" for investment by foreign companies will be applied in the Guangdong free trade zone, which will be launched soon, and that list will be used outside the zone when it is fully established, he said.

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