Reducing the Role of Government - The Chinese Experiment

Abstract:     
China has taken an original and adventurous approach to the issue of over-regulation through the promulgation of the Administrative Licensing Law, which attempts to limit the number and type of approvals which citizens and enterprises are obliged to obtain from government. The Administrative Licensing Law has now been in effect since July 1, 2004, and it is therefore an appropriate time to look at licensing and approvals in China. The article focuses on issued relating to the establishment and reduction of licensing requirements, including the actions taken by government to reduce them, the existence of 'non-administrative' licensing and approval requirements and issues relating to enforcement. It concludes that although substantial progress has been made, improvements could be made in terms of dealing with the complexity of the system and providing new avenues for enforcement, and that a long-term on-going effort will be required to implement the law fully.

Keywords: China, administrative law, Administrative Licensing Law, non-administrative licensing and approvals, regulation, red tape, comparative law

JEL Classifications: K1, K23, K3

Accepted Paper Series