GOVERNMENT FUNCTIONS STREAMLINED

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INTRO

China's reform and opening-up is undergoing an historic process of transformation and upgrading.

The Chinese central government is streamlining many of its administrative processes.

It's simplifying the review and approval process for businesses and investment projects.

And by doing so it hopes to energize the country's maturing market.

TO BE CONTINUED...

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China's central government is changing how it works. It's focusing on making itself more efficient and devolving many of its powers.

The reform of the government's functions is aimed to help spur China' s future economic growth.

The key to economic reform is to balance government, the market and society, and let the market carry out its role to induce more vitality.

That's according to Chinese Premier Li Keqiang. He made the statement last month at an economic forum.

Wang Xiao Guang, a research fellow from Department of Policy-Making Consultation of Chinese Academy of Governance, says that the Chinese government should let the market play a bigger role.

And the core idea of economic reform is marketization.

SOUNDBITE(CHINES): WANG XIAOGUANG, Chinese Academy of Governance, Research Fellow

"Marketization is that market has full right to choose, and it' s maturing under intense pressure.If everything has to be permitted by government instead ofdecided by market forces, the market wouldn' t grow.And that would slow the process of marketization which is the core idea of economic reform."

He says that a major problem of the Chinese government's functions is overusing its power to intervene in market.

SOUNDBITE(CHINES): WANG XIAOGUANG, Chinese Academy of Governance, Research Fellow

" In the past, our government had over-controlled market behaviors. This has to be changed.Government should cut intervention in enterprises and market. "

Ding Yuanzhu, a professor from Chinese Academy of Governance, says that the purpose of transforming the government's functions is to change this situation and energize market.

SOUNDBITE(CHINESE): DING YUANZHU, Chinese Academy of Governance, Professor

"Chinese government devolving power is to energize market and reduce its excessive investment in this area. Although the government wants to do well through excessive investments, it may not do a good job as its capability is limited. "

Wang says the Chinese government lacks long-term regulations to keep it operating effectively.

SOUNDBITE(CHINES): WANG XIAOGUANG, Chinese Academy of Governance, Research Fellow

" Our current administration is too extensive, and we lack the legal basis. We have regulations and many temporary measures. These regulations are short-term and they don't have long-term legal effects."

Ding also says that explicit law and regulations are important to help form an environment of fair competition in the market.

And clarifying property rights is a precondition for the market to function.

SOUNDBITE(CHINESE): DING YUANZHU, Chinese Academy of Governance, Professor

"To clarify property rights needs the government to make explicit laws and regulations. For example, we have Property Law to clarify property rights. And government also needs to make a fair legal system and create an environment of fair competition for enterprises and markets."

He says the Chinese government is currently focusing on simplifying administrative examination and approval procedures to attract more investment in the country.

SOUNDBITE(CHINESE): DING YUANZHU, Chinese Academy of Governance, Professor

"I think transforming government's functions, for now, is streamlining government processes. For foreign investors, this will form a more convenient investment environment. And shifting the government's focus also means to let the market do things what it should do. So this can foster a healthier market. It will be more adaptable to those investors who are familiar with a mature market system in developed countries."

Experts also say there's little doubt that China's economy is maturing. And the streamlining of government processes is an attempt to further open the country's market.