In the News: Fair Play Review; Tougher Food Safety Rules; and Unified Laws for Local and Foreign Financial Firms
April 01, 2019 | BY
Marilyn RomeroChina's State Council plans to improve competition by establishing a fair play review system; food safety violations will incur much stiffer penalties, and the People's Bank of China's governor says domestic and foreign financial firms will soon play by the same rule book.
State Council to set up fair play review system to boost competition
China's State Council is pushing to improve fairness in competition across the country by establishing a fair play review system by the end of the year. According to a statement issued following an executive meeting of China's cabinet, the government wants an overhaul of all enterprise-related regulations, policy measures and regulatory documents, especially those that hinder fair competition and constrain the development of private business.
The State Council has also decided to introduce complaints reporting and third-party evaluation to prevent and rectify the practices of eliminating or restricting competition. Policy measures that fail to grant domestic and foreign investment equal treatment must also be rectified or abolished. The cabinet is also pushing for better intellectual property protection and credit supervision to ensure a dynamic, fair market.
China seeks stiffer penalties for food safety violations
Companies that are found to have violated the China's new Food Safety Law will face much stiffer punishments, according to a draft regulation for the implementation of the law. The draft regulation, which was approved by the State Council last week, also details the responsibilities of production operators, the government and accountability measures.
China is set to begin a countrywide inspection on how meals are prepared at schools ahead, following a recent food quality scandal in a Chengdu highs school that angered parents. Local education departments and market watchdogs have also been advised to screen for loopholes in food safety controls at schools.
China to unify regulations for domestic, foreign financial players
Domestic and foreign players in the financial sector will soon fall under unified regulations and standards as part of the country's financial opening-up, according to the head of China's central bank. People's Bank of China governor Yi Gang said foreign institutions will have the same rules as those for Chinese companies for share proportions, company formation, business scale, shareholder qualification and the number of licenses required.
During last week's China Development Forum 2019 in Beijing, Yi said that most of the 11 tasks identified for financial opening-up have now been completed, although there is still room to improve. China's plan to upgrade its financial regulation is expected to tighten connections between domestic and overseas capital markets, according to Yi. The new measures, according to experts, will also attract more foreign financial firms to the country.
More from CLP: Ministry of Finance and State Administration of Taxation, Circular on the Policy for Enterprise Income Tax and Value-added Tax on Investments in the Domestic Bond Market by Foreign Organizations; In the News: FDI Growth; QFII Quota and Another IP Court; Legislation roundup: Wealth management, foreign banks and cross-border e-commerce; Legislation roundup: Foreign banks, private funds and insurance companies
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