New Measures to Cut Red Tape to Help Increase Economic Growth
China decided to remove the need for the Central Government approval in several ranges of investments in hopes to cut red tape and increase economic growth. Local governments now can give approvals in some investment projects without passing through higher office.
As of now there are 71 investments area no longer requires approval from the Central Government and 20 areas is handed over to local authorities. The new rulings will cover investments in infrastructure ranging from urban transit, civilian airport, and natural gas projects. The new rules will also cover project investments in steel, telecommunications, chemicals, shipping, logistics and F1 racing. Hydropower stations and thermal power projects that are not located on major rivers no longer needs approval from the National Development and Reform Commission. All project applications will be now decided by local authorities.
But changes will not remove all regulatory reviews from some departments that are in charged with enforcing environmental land management and production safety standards, instead they will be strengthening its supervision. The Central Government is speeding up investment by trying to get rid of some administrative obstacles to help boost growth after it slowed ddown in the first quarter of this year.