Promulgation Date: 2019-9-6 Title: Guiding Opinions of the State Council on Strengthening and Standardizing Regulation During and After the Matter Document Number: Fafa (2020) #38国发〔2019〕18号 【失效时间】 Promulgating Entities:State Council Source of text: http://www.gov.cn/zhengce/content/2019-09/12/content_5429462.htm
To all levels of people's government, and to all ministries and commissions directly under the State Council:
The following Opinions are put forward to deeply transform government functions, to deepen the reforms of streamlining and delegation of powers, optimizing service reforms, and further strengthening and standardizing regulation during and after the fact, promoting fair competition through just regulation, accelerating the formation of a business environment that is marketized, legalized, and internationalized:
I. General Requirements
(1) Guiding Thought. With Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as guidance, comprehensively implement the spirit of the second and third plenary session of the 19th Party Congress and it's second and third plenary sessions, firmly establishing a new concept of development, giving full play to the decision-making role of the market in allocating resources, giving better play to the role of the government, continuing to deepen the reform of 'streamlining' and decentralization, persisting in integrations and mergers for streamlining. transfer more administrative resources from ex ante [prior] regulation to regulation during and after the matter, implement responsibility for regulation, complete rules for regulation, innovate in methods of regulation, accelerate the building of a regulatory system for during and after the matter that has clear rights and responsibilities, is fair and equitable, is open and transparent, and is simple and effective, to form a coordinated regulatory framework based on integration of market self-discipline, government regulation, and social oversight; to truly regulate fairly, efficiently, and vigorously; to promote an increase of of market entities' competitiveness and market efficiency, promoting sustainable and healthy economic and social development.
(2) Basic Principles.
Regulation in accordance with law. Persist in legally prescribing authority and administration in accordance with law, so that legally prescribed duties must be performed and there can be no performance without legal authorization; strictly follow the laws and regulations in performing regulatory responsibility, standardize regulatory acts, advance the codification, institutionalization, and standardization of regulation during and after the fact.
Fairness and Equity. All kinds of market entity are treated equally without discrimination, resolutely removing systemic obstacles that impede fair competition, protecting the lawful rights and interests of all types of market entities in accordance with law, ensuring fair powers, fair opportunities, and fair rules.
Openness and Transparency. Persist in making disclosure the norm and non-disclosure the exception, comprehensively promoting lawful disclosure or government regulatory rules, standards, processes, and results, so that regulation is carried out in the daylight, providing market entities with stable expectations.
Sort by Level and Category. Based on the characteristics and degree of risk in different fields, distinguish between normal fields and major fields involving safety that might cause serious negative consequences, deferentially determining the content, methods and frequency for regulation; increasing the level of precision in regulation during and after the matter. Carry out tolerant and prudent regulation of emerging industries, promoting the development of new momentum.
Scientific and Efficient. Give full play to the function of modern technological tactics in regulation before and after the fact, relying on the internet, big data, the internet of things, cloud computing, artificial intelligence, block chain and other new technology to promote innovation in regulation, striving to maximize regulatory efficiency, optimize regulatory costs, and minimize disruption to market entities.
Integrate Management and Service. Advance integration and mutual promotion of government regulation and services, persist in the course of "streamlining", so that procedures and elements are trimmed down and simplified, convenient and beneficial for enterprises and the people, creating a positive environment for development, increasing the people's sense of happiness, gain, and security.
II. Strengthen Regulatory Responsibility
(3) Clarify the targets and scope of regulation. The 'three determinations' [designation of responsible departments, internal bodies, and personnel] should be strictly implemented to indicate regulatory duties and targets, to lawfully conduct regulation of market entities so that regulation has full coverage, ending regulatory blind spots and vacuums. Except where laws and regulations provide otherwise, each department is responsible for regulation during and after the matter for administrative permitting matters that they have responsibility for approving or guiding implementation of; implement a reform of making administrative permitting relatively concentrated, strengthening connections between review and management, putting regulatory responsibility responsibility into practice, ensuring that all matters have someone overseeing them and that someone is responsible for all duties.; for matters on which permits have already been revoked but still require regulation, the competent authorities are responsible for regulation during and after the matter; where authority for approvals is delegated to lower levels, the level for regulation is to be adjusted at the same time to ensure unity between the approval and regulation; for matters where approvals have been changed to filings, the competent departments should strengthen review and lawfully address market entities that engage in the relevant business activities without making the filings; and for industries and fields that do not have specialized law enforcement forces, the approval or regulatory department may use methods such as commissioning enforcement or joint enforcement to join with comprehensive law enforcement departments in addressing conduct in violation of laws and regulations, and the relevant comprehensive law enforcement departments are to actively provide support.
(4) Clear up the scope of regulatory authority. Each department should give full play to functions in areas such as overall planning and coordination of drafting rules and standards and risk analysis. Where broad or more significant and complicated regulatory fields and matters are involved, the regulatory departments should give play to their role in taking the lead, and relevant departments should coordinate and cooperate to establish and complete mechanisms for coordinating efforts. Provincial people's governments should coordinate the regulatory plans and tasks for that administrative region, guiding and overseeing provincial level departments and municipal and county level people's governments to strengthen and standardize regulatory law enforcement; and vertical management departments should coordinate drafting or regulatory plans and tasks in their system, and strengthen coordination and cooperation with the local governments to which they belong. Municipal and county level people's governments should make strengthening equity in regulation their main thrust, to preserve the positive market order.
III. Complete regulatory norms and standards
(5) Establish institutionalized regulatory rules. Each department should draft uniform and simple national regulatory rules and standards for different fields, focusing on serving enterprises, and disclose these to the public; increasing the efficacy of regulation through scientific and rational rules and standards, and reducing the costs of compliance and enforcement. Rules and standards that with vague boundaries and flexibility in enforcement should be tightened up, standardized, revised, and improved. A list of rights and responsibilities should be compiled; on the basis of the national 'Internet+regulation" systems' catalog of regulatory matters, comprehensively clear up the regulatory matters within the scope of each level people's governments' and each departments' duties, clarifying content such as the regulatory entities, regulatory targets, regulatory measures, establishment basis, and method of address; including this in the national Internet+Regulation" system and dynamically updating it, to increase the regularity and standardization of regulation. Strengthen the fundamental position of competition policies, implementing and improving systems for fair competition reviews, accelerating the clearing up of all kinds of provisions and practices that obstruct the unified market and fair competition.
(6) Strengthen the establishment of standards systems. Accelerate the establishment and improvement of national and industry standards in each field, clarifying the management standards, technical standards, security standards, and product standards, that each market entity shall follow; and carrying out regulation strictly in accordance with standards. Simplify and integrate compulsory standards, emphasizing strengthening the establishment of standards on safety, health, conservation, environmental protection, and other such fields, to optimize the bottom line of the compulsory standards. Encourage enterprises and social groups to draft standards that go beyond the compulsory standards; carry out self-declarations and disclosures on standards, and pledges to implement them; promoting mutual recognition abroad of standards on products, technology, quality, and services. Promptly revise and adjust existing standards to adapt to new economic and technological trends, and accelerate research and drafting of standards for new industry and business states. Accelerate the establishment of quality certification systems, lawfully carrying out compulsory certification for products in areas involving safety, health, and environmental production.
IV. Innovate and improve methods of regulation
(7) Thoroughly advance "Internet + Regulation". Use the national "Internet + Regulation" system to jointly converge data from the national credit information sharing platform, the national enterprise credit information announcement system, and other major regulatory platforms; as well as data from all levels of government, complaints and reports made by the public, third-party platforms, etc.; to strengthen consolidation and sharing of regulatory information, and jointly sorting information formed by government performance of duties such as on inspections, administrative punishments, and administrative compulsory measures; as well as information such as on judicial judgments, illegal untrustworthiness, spot inspections, etc. ; and aggregating it under market entities' names. Fully utilize big data and other such technology to strengthen risk tracking and early warnings. Explore carrying out regulation other than on-site regulation, through methods such as remote regulation, mobile regulation, and early warning prevention and control regulation, to increase the level of precision and intelligence of regulation.
(8) Increase the efficacy of credit regulation. Using the uniform social credit code as an identifier, establish authoritative, uniform, and queryable credit records for market entities in accordance with laws and regulations. Forcefully carry out the system of credit pledges, and entering performance of credit pledges in credit records. Promote hierarchical and categorical credit regulation, employing differentiated measures based on enterprise credit status in terms regulatory methods, spot inspection rates and frequency and so forth. Standardize designations and set up a credit 'blacklist' for market entities, establish mechanisms for linking enterprises' and natural persons' credit, strengthening cross-industry, cross-field, and cross-departmental joint disciplinary actions against untrustworthiness; imposing limitations on untrustworthy entities in terms of industry entry, project approvals, obtaining credit loans, invoice receipt, export rebates, entry and exit from the [mainland] territory, and high spending. Establish and complete mechanisms for credit restoration, objections, and appeals. So long as information involving public safety, state secrets, commercial secrets and personal privacy, and so forth is protected, lawfully disclose credit information gained through administrative management, and provide the public with convenient and high efficiency credit inquiry services.
(9) Fully implement "two randoms, one disclosure" regulation. In the market regulation field, fully implement randomized targets for spot inspections, randomized appointment of inspectors, and prompt disclosure of inspection results to the public; in principle, all routine administrative inspections involving enterprises, other than in special industries or key fields, should be conducted through this "two randoms, one disclosure" method. Continuously improve accompanying systems and working mechanisms related to "two randoms, one disclosure" regulation, completing a cross-departmental list of random sampling matters, and including more matters within the scope of cross-departmental spot inspections. Connect the rate and frequency of spot inspections and the chance of being selected to the subject of the inspections' credit level and degree of risk; increasing the force of inspections of those with negative credit records and high risk, and appropriately reducing inspections of those with good credit and lower risk. The results of inspections are to be announced in full through the national enterprise credit information announcement system, the "Credit China" website, the national "Internet + Regulation" system, and so forth.
(10) Implement key regulation for key fields. For special key fields such as those that directly involve public safety or the health and lives of the people, implement full coverage key regulation in accordance with laws and regulations, strengthen quality management throughout all stages, strengthen regulatory enforcement of production safety, strictly implement responsibility for quality and safety at every phases such as production, sales, use, testing, and regulation, to ensure minimum standards in quality and safety. Establish and complete tracking systems critical products such as foods, medicine, medical instruments, and special equipment, using product serial number measures, creating an information chain through which sources can be checked, directions can be tracked, and responsibility can be pursued. All levels of local government may explore establishing systems of lists for critical management based on the characteristics of risks in the area or industry; strictly controlling the number of items for critical regulation, standardizing procedures for critical regulation, and selecting or designating production and business units for key regulation, carrying out follow-up regulation and direct guidance.
(11) Implement and improve relaxed and prudent regulation. The principle of encouraging innovation and creativity should be followed for new technologies, new industries, new business states, and new models; leaving room for development, and at the same time upholding the bottom line of quality and safety; and it is prohibited to either simply shutting them down, or to leave to them unregulated. Strengthen research on the development of new matters, drafting regulatory rules and standards tailored by category. Those that look good and have potential for development should be led in healthy, regular development; where it isn't clear at the moment, establish a certain 'observation period' and promptly guide or address those that have problems appear; strictly regulate those where there is large latent risk that might cause serious negative consequences; and resolutely address illegal business operations in accordance with law. Advance unification of online and offline regulation, with uniform law enforcement standards and criteria.
(12) Lawfully carry out case investigation and handling. Comprehensively use administrative compulsion, administrative punishments, joint disciplinary action, transfer to justice organs, and other such tactics to lawfully carry out punishment of violations of laws and regulations found during regulation. For emerging issues where the circumstances are slight and the negative impact is smaller, primarily employ measures such as giving a talking to, warnings, and orders to make corrections, to promptly correct the situation while simultaneously upholding administration in accordance with law. Where the circumstances and consequences are serious, recalls should be ordered in accordance with law, production stopped, or business licenses revoked or cancelled; and where a crime is implicated, it should be promptly transferred to be handled by the justice organs. Establish and improve systems for strict punishments of violations of the law, and mechanisms for punitive damages, massive fines, and lifetime entry prohibitions, to make serious law breakers pay a high cost.
V. Build structures for coordinated regulation
(13) Strengthen government coordination of regulation. Accelerate the transformation of traditional regulatory methods, break through fragmentation to open regulatory phases in entry, production, logistics, and sales; establish and complete cross-departmental and cross-regional mechanisms for joint law enforcement response and coordination, so that leads on illegality are connected, regulatory standards are networked, and dispositions are mutually recognized. Deepen the reform of comprehensive administrative law enforcement in market regulation, ecological and environmental protection, transport, agriculture, and the culture market; and actively promote comprehensive administrative law enforcement reforms in other fields with the capacity, doing overall planning and allotting administrative punishment authority and law enforcement resources, relatively concentrating administrative law enforcement authority, integrating and streamlining law enforcement teams, advancing the push of the scope of administrative law enforcement authority and forces to the basic township and street levels, gradually making it so that one team manages law enforcement at the basic level, resolving the problem of duplicative law enforcement by multiple sources and levels.
(14) Strengthen market entity responsibility. Establish and improve the system of market entities having initial responsibility, pushing market entities to strengthen self-supervision and performance of legally prescribed obligations in areas such as production safety, quality management, business promotion, post-sale services, and honest payment of taxes. Urge enterprises involved with the public's health and safety, and so forth, to establish and improve internal control and risk prevention mechanisms, making specialized personnel responsible, strengthening workplace safety education for personnel, and strengthening internal safety inspections. Standardize enterprises information disclosures, further strengthening annual announcements, promoting a 'self-declaration+Credit Management' model, and mobilizing enterprises to carry out standardized self-declarations and public pledges on service quality. Accelerate the establishment of a mandatory reporting system for product quality safety incidents, truly ensuring the public's right to know.
(15) Increase the level of industry self-governance. Promote industry associations and chambers of commerce establishing and completing of industry and business self-discipline norms, self-discipline agreements, and norms of professional ethics, to standardize members' conduct. Encourage industry associations and chambers of commerce to participate in formulating national standards, industry standards, and policy regulations; and formulating and publishing industry standards for products and services. Give play to the roles of industry associations and chambers of commerce in areas such protecting rights and interests, addressing disputes, building industry credit, and credit regulation, and support industry associations and chambers of commerce in carrying out or participating in public interest litigation and professional mediation efforts. Standardize industry associations and chambers of commerce's conduct such as dues collection, awards, and certifications.
(16) Give play to societal oversight functions. Establish internal report "whistle-blower" systems, giving significant rewards and strict protections for those who contribute by reporting conduct that seriously violates laws and regulations or major risks and hazards. Open channels for public oversight, integrate and optimize the functions of government complaint and reporting platforms, striving to make it so that one instance gets a response. Lawfully regulate profit-motivated 'fraud fighting' and compensation seeking activity. Cultivate credit service establishments, encouraging the carrying out of credit ratings and third-party assessments. Give play to the oversight function or professional establishments such as for accounting, law, property assessment, certification testing, notary, arbitration, and taxation; giving more consideration to professional opinions in regulatory law enforcement. Strengthen oversight of public opinion, continuing to expose example cases and deter illegal conduct.
VI. Increase standardization and transparency in regulation
(17) Standardize administrative inspections and punishments related to enterprises. Carry out comprehensive hearings on inspecitions involving businesses sites, using methods such as cancelling, integrating or making them non-onsite inspections, to reduce repetitive or unnecessary inspection matters, striving to resolve problems such as having too many matters for on-site inspections, high inspection frequency, and inspections at will. Clear up and standardize matters for administrative punishments, promptly streamlining and standardizing matters with duplicative punishments, non-uniform standards, and for which higher-level law has already adjusted. Strengthen management of catalogs of administrative law enforcement matters, reducing unnecessary law enforcement matters at their source. Complete systems of norms for discretion in administrative law enforcement, reasonably determining the scope, type, and degree of discretion, strictly limiting the exercise of discretion. Prohibit links between punitive confiscation and administrative law enforcement organs interests.
(18) Comprehensively advance openness in regulatory enforcement. Consolidate key stages in administrative law enforcement such as the source, process, and conclusion; strictly implement administrative law enforcement announcement, records from the entire process of law enforcement, and major law enforcement decisions and legality review systems. Establish a unified platform for law enforcement information dislosures, in accordance with the principle of 'the person who enforces making the disclosures' so that except where state secrets, commercial secrets, personal privacy and other information that should not be disclosed in accordance with law is involved, the duties, basis, procedures, and outcomes for administrative law enforcement should all be publicly disclosed. Make full records of the initiation of administrative law enforcement, investigation and collection of evidence, review and decision making, service, and all other process, so that the entire process can be traced and tracked. Major administrative law enforcement decisions must go through legality review, and where they did not pass legality review, a decision must not be made.
(19) Establish methods in which those who perform their duties are not blamed, and those who derelict their duties are held accountable. Comprehensively put in place systems for responsibility for administrative law enforcement, promoting regulatory law enforcement departments and staff to fully perform their duties, be clean and upstanding, and be fair and just in law enforcement. Commendations and incentives should be given to those who are loyal and fully perform their duties; but accountability should be strictly pursued where regulatory duties are are not performed or are performed improper or illegally; and where a crime is implicated, it should be transferred to be addressed by the relevant authorities in accordance with law. Accelerate improvements to methods of liability exemption in each field where regulatory law enforcement duties are fulfilled, clarifying the standards for performance of duties and benchmark lines; and where regulatory duties are performed strictly on the bases of laws and regulations, but the subject of regulations still become problems, comprehensive analysis should be conducted of factors such as motive, objective capacity, procedural methods, nature and extent, impact of the consequences, and recovery of damages; and responsibility waived in for those meeting the requirements.
VII. Strengthening organizational safeguards
(20) Earnestly take hold of the implementation of accountability. Each region and each department should earnestly implement the decisions and deployments of the Party Central Committee and the State Council, should follow each measure and requirement put forth in these Opinions, implement and strengthen regulatory responsibility, scientifically allot regulatory resources, encourage the basic levels to explore and innovate, refine regulatory measures in practice, and truly protect the order of fair competition. Include local governments level of fair regulation in the system of indexes for China business environment appraisals. The General Office of the State Council is responsible for efforts to implement these Opinions and for follow up oversight, and ensuring implementation of each item and that measures are truly realized.
(21) Strengthen rule of law safeguards. In accordance with major reforms and the requirement of a legal basis, and as needed for regulatory work and based on changes in economic and social development, accelerate the advancement of drafting, revising, and abolishing relevant laws, regulations, and rules, to provide sound legal safeguards for regulation during and after the matter. Strengthen links between regulatory law enforcement and the judiciary, establishing mechanisms for reporting on cases between regulatory departments, public security organs, and procuratorates; improving standards and procedures for transferring cases.
(22) Strengthen regulatory capacity building. Accelerate the establishment of high quality, professional, regulatory law enforcement teams, do a solid job of elevating skills, vigorously cultivate regulatory law enforcement personnel where one specialist has several functions. Promote sending regulatory resources such as personnel, funds, and equipment down to the basic levels, ensuring that the basic levels have funding and equipment invested. Promote the establishment of standardized law enforcement equipment, raising the level of modern technology tactics used in case handling.
September 6, 2019