Cutting Red Tape

China took steps to further streamline the permitting process by separating business licenses from administrative permits. The pilot reform, which allows some companies to get their businesses running without obtaining administrative permits, will be practiced in the Pudong New Area of Shanghai. In some areas where the market mechanism is effective and self-discipline is well in place, administrative permits will be canceled. For the sector of processing trade, administrative permits will be replaced by registration, and companies can start their business activity as soon as they submitted relevant documents to authorities. In some other areas where administrative permits cannot be canceled for the time being, the process will become easier and companies can have their permits immediately after submitting materials.