Streamlining power key to clean governance, market vigor

Former senior economic planning official Liu Tienan who was sentenced to life imprisonment in December knew that his fall from grace resulted from abuse of administrative approval power.

Liu wrote and submitted "suggestions on corruption prevention in economic planning administrative approval" during the Party's investigation on him, hoping for leniency, the Procuratorial Daily under the Supreme People's Procuratorate reported on Monday.

According to the indictment, the former deputy head of the National Development and Reform Commission and former head of the National Energy Administration took huge bribes from four companies and several individuals to help with examination and approval of projects.

Premier Li Keqiang said on Monday that corruption still plagues the government in some sectors, largely because "a minority of officials have so much power to give approvals and mete out benefits."

The Chinese government will devolve some powers to lower levels in order to reduce scope for officials bargaining for benefits, Li said at the third meeting on clean governance.

Li proposed that the central and local government make lists of those who have certain powers and their responsibilities.

Streamlining administrative procedures and limiting misuse of power is a major area of reform in 2015 as China's campaign against corruption continues.

China will carry out deeper and wider reform in its administrative approval system to stimulate market vitality and create a better environment for fair competition.

Balance of the roles of the government and the market should be sought, said Kuang Xianming, director of the research center for economy under the China Institute For Reform and Development.

The government has to constrict its omnipresent power by cutting red tape and simplifying administrative procedures for business, which will unavoidably affect the vested interests of some, Kuang said.

In the past two years, 798 administrative approval items have been canceled or delegated to local governments.

National lawmaker Tian Yunfei from eastern Zhejiang Province did not expect that his public listing application for his company would be approved "very soon." Tian remembered years ago that his application for approval of building a 2,000-square meter warehouse on his property took six months.

"We benefited from approval cuts, the reform's dividend," he said.

Last week, the State Council listed 10 ways to speed up the administrative approval process, such as setting time limits for the process and improving transparency. Online application has been promoted for efficiency.

It also called for better supervision of approval authorities and more severe punishment for negligence and abuse of power.

However, delays, redundant procedures and opacity still remain in some areas. Some departments and local governments will delegate powers to intermediaries and appraisal agencies instead of lower levels, which does not help but adds additional burden to enterprises seeking administrative approvals.

On Monday, Premier Li urged the government to clean intermediary service sectors, breaking monopolies and strengthening regulation so as to eradicate the "grey zone" of administrative approvals.