Rethinking Government Approvals: The New Administrative Licensing Law
June 02, 2004 | BY
clpstaff &clp articlesThe entry into effect of the Administrative Licensing Law on July 1 2004 promises to be a milestone in China's advance toward creation of a more transparent legal system and a more limited, efficient and less arbitrary government.
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By Lester Ross, Wilmer Cutler Pickering LLP
More than seven years in the making, the Administrative Licensing Law (the Law) is intended to narrow the scope of activities for which a licence or approval is required, and even in cases where a licence or approval is required, the bias has been shifted in favour of self-regulation. This should reduce barriers to market entry and thereby enhance competition in goods and services. To curb the monetary incentive to impose licence or approval requirements, as well as the tendency toward corruption, the imposition of fees for licences or application documents is prohibited unless regulations expressly provide otherwise.