On November 24, 2014 the State Council issued the Decision of the State Council on Matters relating to Cancelling and Adjusting a Batch of Administrative Examination and Approval Items (hereinafter the "Decision"). The State Council decided to cancel or delegate 58 administrative approval items, cancel 67 professional qualification licensing and certification items, cancel 19 appraisal, up-to-standard and commendation items, and adjusted or specified 82 items for industrial and commercial registration subject to prior examination and approval into or as items subject to post-examination and approval.

An official summed up three characteristics of the Decision:

Cancellation of Many Administrative Approval Items

    The Decision canceled 42 administrative items. The Decision also canceled a numberof professional qualification licensing and certification items including 26 in securities, insurance, financial services and other fields (14 admittance items and 12 competence appraisal items) and 41 in civil aviation, food, agriculture and other fields (1 admittance item and 40 competence appraisal items). In addition, in transportation, culture, industry and commerce, intellectual property, foreign exchange and other fields the Decision canceled 5 appraisal items, 1 up-to-standard item and 13 commendation items.

    The cancellation of administrative approval items described above will encourage entrepreneurship, increase employment, standardize the management of the professional qualifications and reduce the burden on enterprises.

Cancelation of Several Non-Administrative Examination and Approval Items

    The Decision canceled 25, 43%, of the non-administrative approval items. The canceled items mostly relate to citizens, legal persons and other organizations and are closely related to the production and operation of an enterprise and the development of entrepreneurship among citizens. The cancelation of non-administrative examination and approval items will reduce the cost of financing and be helpful to establish an open, transparent and honesty market order.

More matters in key areas

    Among the 58 administrative approval items which are canceled or delegated, 45 items, 78%, are in fields relating to investment and enterprise management, the establishment of a bonded factory, record-filing for the import of used electromechanical products and record-filing and approval of the use of lightning-proof products. In addition, 12 items, 21%, are in financial fields, such as approval of issue of loan cards. 28 of the 58 items, 48%, are preferential tax policies, such as eliminating the need for examination and approval in order to get the consumption tax refund for (grape) wine.

    It is worth noting that the State Council specified or changed the approval for 82 items for industrial and commercial registration that previously required pre-examination and approval so that they now require only post-examination and approval. Thus, 47% of the items that once required pre-examination and approval. The types of enterprises that are the focus of this change are:

1) Examination and Approval of Qualification for Wholesale and Retail of Refined Oil

Description
Examination and approval of qualifications for refined oil wholesaling
Department In Charge 
Ministry Of Commerce or Commerce Administrative
Departments of province-level

Decision
Changed to post-examination and approval

2) Licensing for Food Production, Circulation and Catering Service

Description
Licensing for food production
Department In Charge
Food and Drug Administrative
Departments of People's Governments at the county level or above
Decision
Changed to post-examination and approval

Description
Licensing for food circulation
Department In Charge 
Food and Drug Administrative 
Departments of People's Governments at the county level or above
Decision
Changed to post-examination and approval

Description
Licensing for catering service
Department In Charge 
Food and Drug Administrative
Departments of People's Governments at the county level or above
Decision
Changed to post-examination and approval

3) Examination and Approval of Establishment of Financial Services

Description

Examination and approval for the establishment of asset evaluation institutions
Department in charge 
Financial Administrative
Departments of province-level People's Governments
Decision
Changed to post-examination and approval

Description
Examination and approval for the establishment of an accounting firm and its branches
Department in charge
Financial Administrative
Departments of province-level People's Governments
Decision
Changed to post-examination and approval

Description 
Examination and approval for agency bookkeeping services provided by an intermediary
Department in charge
Financial Administrative
Departments of People's Governments at the county level or above
Decision
Changed to post-examination and approval

Description 
Examination and approval for securities-related services by an investment consulting agency, financial consulting agency or credit rating agency
Department in charge 
China Securities Regulatory Commission
Decision
Changed to post-examination and approval

4) Other

Description
 
Examination and approval for the establishment of a human resources intermediary agency and its scope of business
Department in charge 
Human Resources and Social  Security Administrative
Departments of People's Governments at the county level or above
Decision
Changed to post-examination and approval

Description 
Examination and approval for the establishment of a certification institution
Department in charge
General Administration of Quality Supervision, Inspection and Quarantine
Decision
Changed to post-examination and approval

Description 
Examination and approval for the establishment of a patent agency
Department in charge
State Intellectual Property Office
Decision
Changed to post-examination and approval

Description 
Examination and approval for the establishment of a commercial internet cultural entity
Department in charge
Cultural Administrative
Departments of People’s Governments at the province-level
Decision
Changed to post-examination and approval

Description 
Examination and approval for the establishment of a profit-making medical institution
Department in charge
Health and Family Planning Administrative
Departments of People's Governments at the county level or above
Decision
Changed to post-examination and approval

Description 
Hygienic licensing for cosmetic manufacturers
Department in charge
Food and Drug Administrative
Departments of Governments atm the province-level

Decision
Changed to post-examination and approval

Description 
Examination and approval for the establishment of a duty-free shop
Department in charge
General Administration of Customs
Decision
Changed to post-examination and approval 

    This decision affects a number of industries and areas and will lead to a number of benefits. In particular, the Decision will encourage entrepreneurship and employment.