The State Council Information Office is scheduled for 2015. April of the year On Friday, February 24, at 10:00 a.m., the State Council’s regular policy briefing will be held in the Press Conference Hall of the State Council Information Office. Wang Feng, head of the State Council’s Institutional Reform and Administration Office, and Xin Changxing, Deputy Minister of Human Resources and Social Security, will brief the media on the cleanup and standardization of administrative approval intermediary services and on further enhancing employment and entrepreneurship efforts under the new circumstances, followed by a Q&A session with reporters.

     Reporter from the People's Daily:

     Hello, Director Wang! Nowadays, there are numerous types and a large number of intermediary service agencies in society. Could you please tell us what specific entities and scopes are covered by this round of standardized cleanup, as well as the methods that will be employed? Thank you!

     Wang Feng:

     This time, the focus is on streamlining and standardizing intermediary services related to government administrative approvals—specifically, those technical service activities that applicants are required to entrust to intermediary agencies during the government’s administrative approval process, and which involve paid services. These activities involve a tripartite relationship among enterprises, the government, and intermediary agencies. As for service activities voluntarily undertaken by enterprises—such as those aimed at improving product quality—these are not related to government approvals and thus fall outside the scope of this cleanup effort. Moreover, our goal in streamlining and standardizing intermediary services for administrative approvals is not to restrict the provision of such services. On the contrary, we aim to regulate the operation of these intermediary services, help intermediary organizations return to their proper market positioning and service-oriented focus, enhance the quality of intermediary services, and guide the intermediary service market toward healthy development.

     Specific approaches to streamlining include: First, clarifying the scope of matters involved. Addressing the issues of numerous intermediary services that are time-consuming, poorly regulated, and improperly established, we propose that, except for those legally mandated, no intermediary services should be used as prerequisites for approval. Any matters that can be effectively addressed through enhanced supervision during and after the event should not require intermediary services. Administrative approval items must not be converted into intermediary services. It is strictly prohibited to divide a single intermediary service into multiple separate stages. Furthermore, technical services commissioned by approval authorities may not be shifted onto applicants as their responsibilities. Second, breaking down monopolies. To tackle the problem of strong monopolies and insufficient market competition in certain intermediary services, we propose abolishing all qualification and licensing requirements for intermediary agencies beyond those already mandated by law. We also call for the removal of any practice restrictions on intermediary agencies independently set by individual departments. It is strictly forbidden to control the number of intermediary agencies through quota management. Third, severing conflicts of interest. In response to the issue of some intermediary agencies—particularly “red-cap intermediaries”—engaging in the transfer of benefits with approval authorities, we stipulate that institutions affiliated with approval authorities may not provide intermediary services related to their own approval matters. If such services are absolutely necessary, they must be transformed into independent enterprises. It is strictly prohibited to designate specific intermediary agencies. All industry associations and chambers of commerce acting as intermediary agencies must be completely separated from approval authorities. Government officials are barred from holding concurrent positions in intermediary agencies. Fourth, standardizing fees. To address the problems of high prices and arbitrary fee structures in intermediary services, we propose that, in principle, intermediary service prices should be determined by market forces. Services characterized by strong monopolies or lacking sufficient competition in the short term should be brought under government price regulation, with the scope of government-regulated prices being minimized to the greatest extent possible. Costs associated with technical services commissioned by administrative agencies should be included in departmental budgets. Fifth, implementing list-based management. To promote standardized and legal management of intermediary services, enhance social oversight, and eliminate unauthorized and excessive establishment of such services, we propose introducing a list-based management system for intermediary services that have been streamlined and standardized. Any intermediary service not listed shall no longer serve as a prerequisite for approval. Any newly established intermediary services must undergo rigorous feasibility studies and comply with prescribed legal procedures. Each department shall publicly disclose information about intermediary services. Sixth, strengthening regulatory oversight. To address the inadequacy of market oversight over intermediary services, we clearly define the responsibilities of industry regulators. We urge each industry regulator to establish and improve standards and norms for intermediary services, guide and supervise intermediary agencies in perfecting their service systems, rigorously investigate illegal and non-compliant activities, and build credit systems and evaluation mechanisms.