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New Law Gets Unprecedented Attention

The central government has made unprecedented preparations to ensure that the Law on Administrative Licensing, which went into effect today, is correctly applied and strictly enforced.

"I have rarely seen any law receiving so much attention from the government," said Yu An, an administrative law professor with the School of Public Policy and Management at Tsinghua University.

Administrative licensing refers to the formal granting of legal permission for individuals or corporations to engage in special activities, mainly in those related to business. It is a major government function exercised by authorities at all levels.

However, overuse of licensing powers has resulted in infringements on the rights of individuals and business entities and has hampered the country's efforts to build a market economy.

The law, passed last August, is intended to ensure the reasonable use of administrative licensing powers, protect the interests of individuals and business entities, and promote efficient administrative management.

The new law will remove many licensing rights from government departments, Yu said.

The State Council started streamlining administrative licensing in 2001, when legal experts were still discussing the draft of the new law.

Since then, nearly half of the country's 3,900 items that once required licensing have been dropped from the list.

The State Council is expected to release a list of licensing items that will be retained; items not on the list and with no basis in law will be considered illegal. People or businesses that have been illegally forced to pay for licenses will have the right to sue the administrative bodies at fault.

Professor Ying Songnian, director of the Division of Law at the National School of Administration (NSA), said that determining the validity of specific licenses is extremely difficult.

Ying also noted that the government has gone to great lengths to ensure administrators are aware of the changes. "Almost every government official above county level has received training on this legislation."

All vice ministers and vice governors in charge of legal affairs across the country received four days of training at the NSA earlier this year.

Ying said such high-profile training on a particular law is rare. "The process of preparation ensures that governments at all levels fully understand the important role the legislation will play in building a law-based administration."

(China Daily July 1, 2004)

New Laws Take Effect on July 1
409 Items Removed from Gov't Approval
Shanghai, Beijing Shed Administrative Licenses
Premier Urges Licensing Reforms
New Law to Help Streamline Licensing
New Bill Introduces Licensing Hearing
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