How promising is the cutting of red tape?

The government made amazing achievements in 2016. At a press conference during this year's session of the National People's Congress, the top legislature, in March, Premier Li Keqiang said the government had already abolished one-third of the unnecessary administrative licenses and will reduce them by half by the end of the year.

That promise has been fulfilled. By early December, the State Council, China's Cabinet, had canceled 222 unnecessary vocational licenses for employees and more than 50 approval procedures for investment programs.

The importance of simplifying administrative procedures can never be overestimated. Complicated administrative procedures not only impose additional economic costs on enterprises, they also force enterprises to spend more time to complete them. Just to open a small shop you have to purchase dozens of stamps. This time-and energy-consuming procedure is not conducive to doing business.