Government Efforts to Streamline Administration in Hopes to Transform and Boost Efficiency
The government is all in efforts in streamlining its administration and hopes that it will transform government functions and boost efficiency that will spur economic vitality and attract overseas investments. The streamlining is aimed to meet the requirements of another round of opening up and to improve the country’s global competitiveness.
Before the country relied on demographic dividend but said dividend is slowly being diminished. Streamlining administration is a step in going forward towards opening up and in nurturing new competence in a global scale. Shanghai has shared its experience in streamlining efforts, as the free trade zone in the city introduced a much-reduced negative list for foreign investment cutting special administrative measures by a third. The Shanghai government is exploring new business registration policies that will cut a company’s registration time from several days down to an hour. And in the free trade zone, around 100 new measures is implemented and the international trade was given its own channel. Customs clearance procedures have also cut down to 40 percent.
This new measures created a difference and the business environment in China has improved greatly in the past years as market access has been opened up further. Based on a report by the World Bank, China rose six places to 84th spot out of 189 economies based on terms of convenience in conducting businesses. Although conventional advantages in the global economy are slowly waning in the past years, both foreign trade and overseas growth investment have declined because of the weakening of international demand and the business environment in China.
Foreign trade in China was at 1.95 trillion last month, with a decrease of 0.3 percent year on year. According to a global economic researcher at the China institute of Contemporary International Relations said that China is facing insufficient external demand for goods paired with a growing demand for better wages and welfare.