Business / Economy

China to regulate intermediary services for govt review

(Xinhua) Updated: 2015-04-30 09:48

BEIJING - China's State Council released a notice on Wednesday to help businesses and investors pass government review by regulating intermediary services.

In China, large-scale new businesses or commercial projects must go through government review. Applicants for government review must go to intermediary agents, either independent or affiliated with cabinet departments, that specialize in and profit from helping them obtain approvals.

"The process is usually lengthy and costly, and the intermediary service market is dominated by just a few agents with links to government organs," the State Council said in the notice.

To improve intermediary services, the notice said the market threshold will be lowered and more intermediary agents will be welcomed.

To prevent corruption and encourage fairness, cabinet departments are prohibited from designating intermediary agents to review applications that are affiliated with their departments.

The price of intermediary services will mostly be determined by the market, and the government's pricing power will be greatly restricted.

The State Council notice also said authorities will formulate a set of standards and specifications to guide the healthy development of intermediary services.

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