China will practice list-based management for all items requiring administrative approval, to regulate the exercise of power and provide more benefits for enterprises and more accessible services to the public, the State Council executive meeting chaired by Premier Li Keqiang decided on Tuesday.

The meeting also decided to implement category-based management of corporate credit risks to make oversight fairer and more efficient.

"Both decisions are aimed at fostering a market-oriented, law-based and internationalized business environment, continuing to deepen the reform of government functions and lower government-imposed transaction costs, which are of great significance," Li said. "They are also required by the urgent needs at present, as market expectations now are relatively weak."

The meeting adopted the List of Items Requiring Administrative Approval Stipulated by Laws, Administrative Regulations and State Council Decisions (2022 Edition).

The meeting required all provinces, cities and counties to finish compiling their own lists of items by the end of the year. The essential information covered by the lists should be broadly uniform across the country to ensure that the same approval item will be processed according to the same standards in different regions.

No administrative approval will be required or implemented on any item outside the lists.

"Lower and predictable government-imposed transaction costs will enhance public confidence in the market and better unlock market vitality and social creativity," Li said. "Rolling out these two policies now is enabled by the groundwork laid in the past.

"We must stringently implement list-based management and ensure that market players are not disturbed over any item outside the lists, so that they can compete on a level playing field in an open and transparent market environment," he added.

To foster a market climate of honesty, good faith and fair competition, category-based management of corporate credit risks will be pursued in accordance with laws and regulations. Well-calibrated regulatory measures, including oversight conducted through the random selection of inspectors and inspection targets and the prompt release of results, will be adopted to ensure that regulation will make entities of bad faith pay the price.

"Credit is the cornerstone of a market economy. Regulation will not stand in the way of honest businesses. Market entities of bad faith or with a poor credit record will face more frequent and stringent regulation and supervision," Li said.

The proportion and frequency of sampled inspections will be reduced for enterprises with low risk, while those with high risk or poor credit records will face targeted, increased random checks and on-site inspections.