Recently, the National Development and Reform Commission released the “Catalog of Government-Set Prices for Business and Service Charges” (hereinafter referred to as the “Catalog”). In response to issues of public concern, a reporter interviewed a relevant official from the National Development and Reform Commission.

　　Q: Could you please provide an overview of the main background behind the formulation and issuance of the “Catalogue List”?

　　Answer: Vigorously streamlining and standardizing business service charges and optimizing the development environment for the real economy are important measures guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implementing the spirit of the 19th National Congress of the Communist Party of China, and promoting supply-side structural reform. They also represent a key component of deepening the reform of decentralization and delegation of power. In his important speech at last year’s Central Economic Work Conference, General Secretary Xi Jinping emphasized the need to strengthen the awareness of “letting the water nurture the fish,” stepping up efforts to cut taxes, reduce fees, lower factor costs, streamline and standardize government charges and funds, and reduce various transaction costs—especially institutional transaction costs. In recent years, various regions and departments have made great strides in reducing institutional transaction costs by vigorously abolishing fee items, lowering fee standards, and regulating charging practices, thereby achieving positive results in easing the burden on enterprises. However, problems such as a large number of fee items, inconsistent naming conventions, and heavy burdens on enterprises still persist, making it urgently necessary to further standardize and consolidate these charges. Therefore, in accordance with the Party Central Committee and the State Council’s deployment for streamlining and standardizing enterprise-related charges, the National Development and Reform Commission, together with relevant departments and local authorities, has conducted a comprehensive review of business service charges subject to central and local price controls, producing a “single network” catalog of government-priced business service charges. After publicly soliciting comments, it has been decided to make this catalog publicly available.

　　Q: What are the main contents of the “Catalog List”?

　　Answer: The “Catalogue List” covers all business and service charges subject to government pricing management, achieving full coverage under a single, comprehensive list. Among these, there are a total of five centrally-priced items, including basic service fees charged by commercial banks and bank card swiping fees, service fees for monopolized segments in the civil aviation sector, service fees for major coastal and Yangtze River ports as well as all other ports open to foreign trade, credit reporting service fees, and inter-network settlement prices for telecommunications and internet networks. On average, each province has about 13 locally-priced items, primarily concentrated on vehicle tolls, parking service fees for motor vehicles, fees for the disposal of hazardous waste, and service fees provided by public utility operators that involve industry- or technology-based monopolies and are closely related to their core businesses. In addition, a few provinces also implement government pricing management for a small number of regionally specific items, such as emergency rescue service fees for mines and service fees for border trade venues and facilities established with government investment. Meanwhile, the “Catalogue List” explicitly lists, item by item, information such as the nature of each charge, the legal basis for the charge, the pricing authority, and the competent industry regulator, making it convenient for the public to access, use, and supervise these charges.

　　Q: How did the “Catalogue List” get “slimmed down”?

　　Answer: In April of this year, with the approval of the State Council, our Commission, together with the Ministry of Finance, the Ministry of Industry and Information Technology, and the Ministry of Civil Affairs, issued the “Notice on Clearing Up and Standardizing Business-Related Service Charges Involving Enterprises” (Fa Gai Jia Ge [2017] No. 790), requiring the comprehensive establishment of a catalog system for government-priced charges. Any charges not included in the catalog shall not be subject to government pricing, and a dynamic adjustment mechanism for the catalog will be implemented. In June of this year, the Executive Meeting of the State Council once again instructed the establishment and improvement of a catalog system for government-priced business-related service charges. In accordance with these instructions, our Commission, together with relevant departments and local price authorities, and in conjunction with the nationwide effort to clear up and standardize enterprise-related charges, conducted a comprehensive review of business-related service charge items subject to government pricing management, following the principle of "covering all areas horizontally and reaching all levels vertically." We resolutely liberalized a number of items that meet market competition conditions, no longer serve as prerequisites for administrative approvals, and whose service content is not mandatory. We also canceled a number of items whose charging nature has changed and whose related expenses are now covered by fiscal funds, and consolidated and standardized a number of items with similar natures and scopes. Based on extensive consultations with departments and local authorities, we have finalized the “Catalog.” Following the cleanup and standardization efforts, the number of centrally priced business-related service charges has been reduced from the original 13 items to 5 items, representing a reduction of 62%. The number of locally priced business-related service charges has been reduced from an average of 25 items per province to 13 items, a reduction of 48%.

　　Q: What is the significance and role of issuing the “Catalogue List”?

　　Answer: First, the publication of the “Catalogue List” is an intrinsic requirement for strengthening the transformation of government functions and innovating administrative management approaches. The “Catalogue List” clearly defines the boundaries between government and the market: all business and service charges that meet competitive conditions will be fully liberalized, thereby fully leveraging the role of market mechanisms. For those items that do not meet the conditions for liberalization, they will be included in the charge catalogue list and managed meticulously, effectively, and thoroughly. By stimulating market vitality, promoting market competition, and simultaneously strengthening supervision during and after the event, we can reduce the burden on various fee-paying entities.

　　Second, publishing the “Catalogue List” will help consolidate the achievements made in streamlining and standardizing fees. Following a comprehensive cleanup and standardization effort, the number of business and service-related fee items has been significantly reduced, and order has gradually improved. By formalizing the outcomes of this cleanup and standardization effort in the form of a catalogue, we can achieve dynamic, nationwide management under a single, unified system. This catalogue will serve as the basis for future fees charged to enterprises; no government-set fees may be imposed beyond those listed in the Catalogue. This approach will effectively prevent arbitrary fee collection at its source and help ensure that the institutional transaction costs—already reduced—do not rebound.

　　Once again, the publication of the “Catalogue List” helps harness the positive role of social oversight. The “Catalogue List” is a detailed refinement of the government pricing catalogue, clearly and systematically listing, at each level, all business and service charges subject to government price regulation nationwide. This enhances the transparency of fee policies and makes it easier to access and consult these policies, thereby facilitating social oversight.

　　Q: What other work will be carried out after the issuance of the “Catalogue”?

　　Answer: First, we need to establish a dynamic adjustment mechanism for the list of fees. As the reform toward market-based pricing continues to deepen, the management authority and methods for certain fee items are also being adjusted and changed. In line with the principle of streamlining administration and delegating power, we should promptly adjust those fee items whose management methods have changed, where government pricing is no longer necessary, or where the pre-approval services subject to administrative approval have undergone significant changes. Second, we must maintain a high-pressure stance against illegal fee collection. We will strengthen supervision and inspection of the measures already introduced to reduce fees and relieve burdens, preventing any resurgence of such practices. We will rigorously investigate and punish all kinds of illegal and non-compliant fee-charging activities, and urge relevant local governments, departments, and institutions to step up rectification efforts. Third, we need to further standardize fee-charging practices in key areas. In particular, we will strengthen the management of pre-approval intermediary services, monopolistic industries, and fees charged by industry associations and chambers of commerce, effectively addressing the fee issues that businesses have strongly reported during the cleanup process. Fourth, we will enhance market price regulation and antitrust enforcement, standardizing the pricing of business service fees subject to market-based adjustments, and genuinely safeguarding a fair and competitive market environment. Fifth, we will further improve the mechanisms for reporting, filing complaints, investigating, and providing feedback on fees levied on enterprises. We will continue to make good use of the “Enterprise Fee Complaints and Messages” platform on the Chinese Government Website, fully leveraging the role of the national 12358 price monitoring platform. For each typical case of arbitrary fee collection, we will ensure thorough investigation and public exposure, thereby creating a strong deterrent effect.