"Market entities' development lays the foundation for socialist market economy. Market entities' fair competition comes down to constantly improving the system of the socialist market economy. That calls for further effort," Premier Li Keqiang said at the executive meeting of the State Council on March 31.

"That is the very base of the whole situation," Premier Li said. "The government should settle down to work, just like how scientists conduct basic research."

New measures were rolled out to deepen the reform of government functions to further energize market players and boost the momentum of development.

"More efforts should be made to further streamline administration and delegate powers, to constantly optimize the business environment and spur market entities' vitality and social creativity," the Premier said.

Market entities to survive, thrive

"Stabilizing market entities and employment should be accentuated," Premier Li said. "Despite the government's regulation, the market still plays a decisive role in resource distribution in the system of the socialist market economy."

Noting the unprecedented COVID-19 outbreak in 2020, Premier Li said the macro policies were timely and decisively made and implemented, without indiscriminate stimulus.

"Over 100 million market entities played a pivotal role in upholding economic fundamentals," the Premier said.

"The implementation of bailout policies and promotion of reform measures energizing market entities ushered in unexpected substantial growth in the number of market entities since the second half of 2020. The total number outstripped 138 million," the Premier said. "That not only strongly boosted employment, but also facilitated economic recovery."

Policy-making and implementation should stick to market entities' needs. More efforts should be made to further streamline administration and delegate powers, to constantly optimize the business environment, and spur market entities' vitality and social creativity.

"Market entities' stability and vitality paves the way for constant healthy development and long-term good prospects," the Premier said.

Fair supervision essential

"Power delegation should go hand in hand with regulation," the Premier stressed.

"Delegating powers doesn't refer to inaction but selective and targeted governance, and upholding a market environment conducive to fair competition matters most."

It was decided at the meeting to take policy steps to create a more enabling employment environment. The number of professions requiring government-approved licenses will be reduced, and certification of vocational skill grades by private actors will be promoted.

The sound development of new forms of employment will be supported. Occupational injury insurance for flexible employment will be piloted — and the coverage of work injury compensation insurance extended — to safeguard the lawful rights and interests of people engaged in flexible employment.

Measures should be taken to streamline procedures and reduce documents, time, and fees required in government review of applications. The process of trademark and patent registration and application should be digitized. The inspection rate of law-abiding enterprises and low-risk goods should be brought down. Charges at ports should be reduced or merged.

Domestic demand should be boosted. Unwarranted restrictions on the cross-city registration of used cars should be overhauled. Market access for homestays should be appropriately eased.

Supply of livelihood-related public services should be optimized. More inter-provincial services should be provided for matters concerning people’s daily lives. The development of elderly care facilities should be advanced, and private actors should be involved to expand capacities and raise the quality of operation and service.

Fair regulation will be further promoted. Competent departments should fulfill due oversight responsibilities. Regulatory standards and rules will be refined, and a benchmark system for administrative discretion established. Compliance oversight will be innovated and stepped up, and matters involving people's life and health and public security will be put under stringent oversight.

"Fair supervision should act as a necessary safeguard for streamlining administration and delegating powers," the Premier said, "and a line should be drawn for fair market rules. Enterprises of any background or scale should follow market rules without violations. Deepening the reform of government functions will help foster a more vibrant, fair and efficient market, in which market entities could compete and develop in a fair manner."