Opinions of the General Office of the State Council on Innovation of Investment Management Modes and Establishment of Cooperative Regulation Mechanisms

· Document Number：No. 12 [2015] Issued by the General Office the State Council

· Area of Law： Government Affairs

· Level of Authority： Regulatory Documents of the State Council

· Date issued：03-10-2015

· Effective Date：03-10-2015

· Status： Effective

· Issuing Authority： General Office of the State Council

Opinions of the General Office of the State Council on Innovation of Investment Management Modes and Establishment of Cooperative Regulation Mechanisms
(No. 12 [2015] Issued by the General Office the State Council)
The People's Governments of all provinces, autonomous regions and municipalities directly under the Central Government; the ministries and commissions under the State Council; and the institutions directly affiliated to the State Council:
The Central Committee of the Communist Party of China (CPC) and the State Council both attach great importance to the work of reform of the system of administrative review and approval and transformation of functions of the government. Since its formation, the new government has repealed or decentralized to lower levels a large number of items of review and approval of investment projects, achieving important successes by stages in the work of streamlining of administration and devolution of power with reform of the system of administrative review and approval as a breakthrough point. All regions and all departments have earnestly implemented the relevant plans of the CPC Central Committee and the State Council, and, in line with the requirement for combination of devolution of power with control, have actively made exploration for strengthening measures for in-process and follow-up regulation, achieving certain successes. Along with in-depth promotion of streamlining of administration and devolution of power, it is imperative to strengthen firm acceptance, good management and cooperative regulation of investment projects, and there is urgent need to speed up establishment of mechanisms for regulation over investment projects with vertical and horizontal joint action and coordination, in striving to solve outstanding problems including disunity among different departments in devolution of power, insufficiency of the acceptance capacity of the grassroots level, imperfection of regulatory mechanisms and incompleteness of regulatory means. To strengthen in-process and follow-up regulation over investment projects, and to regulate the behavior of investment and the market order, the following Opinions with respect to the establishment of mechanisms for regulation over investment projects with vertical and horizontal joint action and coordination, with the approval of the State Council, are hereby raised.
I. General Requirement
In full-scale implementation of the spirit of the 18th National Congress of the CPC and the 2nd, 3rd and 4th Plenary Sessions of the 18th Central Committee of the CPC, in accordance with the relevant decisions and plans of the CPC Central Committee and the State Council, and in adherence to administration by law, streamlining of administration and devolution of power and attachment of equal importance to devolution of power and control, the investment management function of the government shall be further transformed, with innovation of modes of investment management. By means of the Internet and Big Data technology, platforms for online review, approval and regulation with information sharing and with nationwide coverage shall be established, and transparent, standard and highly efficient mechanisms for regulation over investment projects with vertical and horizontal joint action and coordination shall be established, to realize effective regulation with “systems plus technology”, to ensure that there are not only adequate devolution of power, firm acceptance and good management, but also adequate service provision and effective regulation, and to promote greater regularization of the market order and sufficient release of vigor and vitality of the market.
II. Basic Principles:
To well fulfill the relevant work of innovating modes of investment management and establishing mechanisms for cooperative regulation, the following principles shall be grasped:
1. Unified devolution of power, firm acceptance and good management: The competent departments concerned shall decentralize to lower levels the power of review and approval simultaneously, to make it convenient for project operators to undergo processing in the nearest place, and for local governments to provide service in a close way, and to bring into full play the policy effect of streamlining of administration and devolution of power. All provincial-level governments shall adhere to compatibility between devolution of power and the acceptance capacity of the grassroots level, rationally determine the levels for devolution of power, and further promote the capacity and quality of the grassroots-level government, to ensure smooth acceptance. The system of completion of processing within the prescribed time limit shall be applied, to practically raise the work efficiency.
2. All assuming their respective responsibility in exercising regulation in accordance with law: All regions and all departments shall fulfill their duty in accordance with law; adhere to combination of devolution of power with control; practically strengthen regulation over the whole process of construction of projects, particularly regulation over the processes of start of construction and entry into production upon completion of construction; and redress, investigate and punish acts of construction in violation of law or rules.
3. Cooperative regulation with vertical and horizontal joint action: Mechanisms for regulation with interdepartmental coordination and cooperation, and with upper-lower joint action between the competent departments concerned and local governments at all levels shall be established, with importance attached to the role of local governments in exercising regulation in a close way and at their convenience and the professional advantages of the competent industrial management departments concerned, to form overall resultant force of regulation.
4. High efficiency regulation on the basis of platforms: Construction of platforms for online review, approval and regulation of investment projects that connect the departments of development and reform, national land (or marine) resources, urban-rural planning, environment protection, safety regulation, financial regulation and audit as well as departments of industrial management with local governments at all levels “horizontally to the outer limits”, and that connect the competent departments concerned with local governments at all levels “vertically to the bottom level” shall be sped up, to realize interconnectivity of and mutual access to information on regulation on the basis of the platforms, to realize full transparency and verifiability, and to raise the efficiency and level of regulation.
5. Focusing on service provision and exercising regulation over credit: Provision of “all-in-one” services of acceptance, processing and regulation online shall be promoted, and the work of regulation shall be intended for well providing services for project operators, to exercise regulation through service provision, and to keep enhancing the awareness about service provision and the quality of service. The important role of project information and credit records in the work of regulation shall be brought into full play, with improvement of mechanisms for encouraging faith-keeping and punishing breach of trust, to promote formation of a healthy and orderly market order.
III. Practical Firm Acceptance and Good Management
By means of rational division of the authority of management, active devolution of power by departments in coordination and further promotion of the acceptance capacity of local governments particularly the grassroots-level government, firm acceptance and good management shall be practically realized.
1. Rational division of the authority of management: All provincial-level governments shall, in light of the realities of their local regions, specifically divide the authority of management by local governments at all levels, and take the acceptance capacity of the grassroots-level government as an important factor for consideration. It is inappropriate for them to simplistically “decentralize power to the bottom level” without limitation. For projects involving major planning and layout of the local region or involving development and distribution of important resources, the advantages of the relevant provincial-level departments in terms of policy control, technical forces, etc in connection with them shall be brought into full play.
2. Active devolution of power by departments in coordination: After cancellation or decentralization to lower levels of items of review, approval or ratification, the competent departments concerned shall accordingly make readjustment to the authority of review and approval with respect to preliminary review of, planning and choice of sites for use of land (or use of sea areas), review and approval of environment impact assessment (or marine environment impact assessment), examination of energy conservation, etc, to realize simultaneous devolution of power as soon as possible. Where simultaneous devolution of power is unfeasible for the time being, the competent departments concerned shall adopt means of authorizing review and approval departments at the same level with ratification authorities to conduct review and approval, or establishing mechanisms for acceptance for processing at the same level, etc, to practically raise the efficiency of work.
3. Promotion of the acceptance capacity of the grassroots level: The competent departments concerned shall strengthen work guidance and training in multiple forms including compiling guides, offering centralized training, organizing study and discussion, conducting exchange, etc, to improve the work proficiency and comprehensive service management capacity of local governments, particularly grassroots-level governments.
4. Application of the system of completing processing within the prescribed time limit: The competent departments concerned shall, in accordance with the division of duty, make public the list of their power and the list of their responsibility as soon as possible, and, in accordance with differentiation of categories of investment projects, define the specific processing procedures and time limit for project review and approval, ratification, recordation, planning permission, review and approval of environment impact assessment (or marine environment impact assessment), review and approval of use of land (or use of sea areas), water drawing permission, construction work permission, etc, to rationally shorten the processing period, and to raise work efficiency.
IV. Highlighting Priorities of Regulation
For the authorities at all levels for project review and approval, ratification and recordation and the competent departments concerned at all levels of national land (or marine) resources, urban-rural planning, environment protection, safety regulation, construction, audit, administration of industries, etc, they shall strengthen regulation over the whole process of project construction with priority given to the processes in connection with start of construction work and the process of entry into production of projects upon completion of construction, to realize lawful start of construction of projects, and compliance and orderliness of the process of construction.
1. The process of start of construction work: Before start of construction work, project operators shall be provided with guidance and service in going through the various formalities prior to start of construction work in a timely manner, in accordance with the basic procedures and provisions for project review and approval, ratification and recordation, and on the basis of the platform for online review, approval and regulation of investment projects, to guarantee procedural lawfulness, completeness of procedures and completion of processing within the prescribed time limit, and to raise the efficacy of administration.
2. The process of entry into production upon completion of construction: After start of construction work and before entry into production upon completion of construction, supervision and inspection over the process of construction of projects shall be strengthened, to ensure construction and entry into operation of projects in accordance with the relevant provisions, and to guarantee regularization and orderliness of construction of projects. After completion of construction, the competent departments concerned shall perform acceptance appraisal in accordance with law and in a timely manner. Only after acceptance appraisal, can the projects concerned be put to use.
V. Fulfillment of Regulatory Responsibility
The regulatory duty of both the competent departments concerned and local governments shall be further defined, and the regulatory capacity building shall be strengthened, to adequately fulfill regulatory responsibility.
1. Fulfillment of departmental regulatory responsibility: The authorities for project review, approval, ratification and recordation shall exercise regulation over investment projects in accordance with the relevant laws and regulations, development planning, industrial policies, targets for control over the total quantity, technical policies, access standards, etc. Departments of national land (or marine) resources, urban-rural planning, environment protection, safety regulation, administration of industries, etc shall strictly fulfill their regulatory duty entrusted by law and regulations to strengthen follow-up regulation. Financial regulation authorities shall strengthen guidance and supervision, and guide financial institutions to independently review and approve loan lending in accordance with law and regulations as well as business principles, and not to lend loans in violation of rules or reject applications of enterprises for loan borrowing merely under the excuse that the relevant project review, approval, ratification and recordation authorities are at relatively low levels. Audit authorities shall strengthen audit supervision over government-invested projects, projects funded by State-run enterprises and other projects of public works under construction in cooperation between government capital and social capital, etc, and keep organizing follow-up audit over implementation of major policy measures of the State, particularly fulfillment of major projects, priority funding guarantee and so on. All competent departments concerned shall establish the system of releasing annual regulation reports, strengthen guidance and supervision over authorities at lower levels, and sum up and generalize advanced experience of local regions.
2. Definition of the regulatory responsibility of local regions: In decentralizing items of administrative review and approval to lower levels, local governments at all levels and their departments concerned shall, in accordance with the requirement of “simultaneous devolution of power and responsibility” and “Whoever accept projects shall exercise regulation thereof”, enhance their awareness about regulation following devolution of power, actively make exploration for innovating methods and ways of regulation, and practically assume responsibility for regulation. All provincial-level governments shall strengthen guidance and supervision, and define the regulatory responsibility and regulatory measures of the accepting parties.
3. Strengthening the regulatory capacity building: The competent departments concerned shall further improve the relevant rules and regulations, development planning, industrial policies, targets for control over the total quantity, total regional emissions of pollutants by industries, technical policies, access standards, etc, and take them as basis for and important contents of regulation. The competent departments concerned shall strengthen the regulatory capacity building, and shall, by means of launching the work of standardization and regularization of regulation, strengthen training and exchange of experience, and strengthen guidance over and regularization of grassroots-level regulatory departments. Local governments at all levels shall further integrate the grassroots-level regulatory forces, strengthen the development of grassroots-level regulatory human resources, guarantee funding for regulation, and promote the technical level and capacity of regulation.
VI. Innovation of Ways of Regulation
By means of application of the Internet and Big Data technology, and on the basis of the platform for online review, approval and regulation, effective regulation based on “systems plus technology” shall be realized.
1. Acceleration of construction of the platform for online review, approval and regulation of investment projects: On the basis of China E-Government Extranet, the four categories of application systems of project declaration, online processing, supervision and management, and electronic supervision shall be built on the platform, to realize horizontal interconnection among the competent departments concerned and vertical interconnection between the competent departments concerned and local governments at all levels, and to gradually realize “acceptance on the platform, online processing, completion of processing within the prescribed time limit, regulation in accordance with law and whole-process supervision” with respect to investment projects that are not related to secrecy.
2. Establishment of the system of unified coding of projects: For applications for going through the relevant formalities of review, approval, ratification and recordation of investment projects, they shall be accepted for processing on the platform for online review, approval and regulation, to generate in time the sole codes of the projects for identification during the whole period of construction, which shall include on a unified basis the relevant information on handling the relevant procedures by the competent departments concerned, information on regulation (punishment) and important information in the process of execution of the projects, and which shall be connected with the social credit system as part of the basic conditions for follow-up regulation.
3. Establishment of mechanisms for joint actions in regulation: The competent departments concerned shall, through the platform for online review, approval and regulation, exchange information on projects in real time, to realize interdepartmental web connection and information sharing. The competent departments concerned shall actively strengthen service provision, and guide project operators to complete in accordance with law and rules the procedures for project review, approval, ratification and recordation, planning permission, review and approval of environment impacts assessment (or marine environment impact assessment), review and approval of use of land (or use of sea areas), water drawing permission, etc prior to start of construction work. For any construction of projects in violation of law or rules, the platform for online review, approval and regulation shall remind the operators concerned and the relevant regulatory departments of it in a timely manner. The platform for online review, approval and regulation shall do a good job of coordination with the departments of audit, statistics, etc, to realize mutual coordination and sharing of platform information and statistical information.
4. Establishment of the system of online recordation of information on investment projects: Prior to construction of projects, the project operators concerned shall log on the platform for online review, approval and regulation to submit the basic information on start of construction of projects for recordation with project codes. After start of construction of projects, the project operators concerned shall submit online the basic information on developments and progress in project construction for recordation on an annual basis. After acceptance appraisal of projects upon completion of construction, the project operators concerned shall submit online the basic information on completion of construction of the projects. The departments of development and reform shall formulate the guide to and general format of the basic information on start of construction of projects, developments and progress in construction of projects, acceptance appraisal of projects upon completion of construction, etc, to make it convenient for the relevant project operators to make submission online for recordation. The competent departments concerned shall, in accordance with the information on projects submitted online by project operators for recordation, actively provide services of the relevant policy support, Big Data information, etc. Where information thereon has not been submitted for recordation in a timely manner, the platform for online review, approval and regulation shall remind the relevant project operators and the competent departments concerned in appropriate ways.
VII. Perfection of Mechanisms for Inhibition and Punishment
Acts in violation of law or rules shall be found out in a timely manner through multiple channels and by multiple means. The role of credit records in regulation shall be brought into full play. Mechanisms for encouraging faith-keeping and punishing breach of trust shall be made complete.
1. Strengthening of supervision over law enforcement and disclosure of information: The authorities for review, approval, ratification and recordation and the competent departments concerned of national land (or marine) resources, urban-rural planning, environment protection, safety regulation, construction, audit, industrial management, etc shall strengthen law enforcement means of online monitoring, project inspection, inspection over law enforcement, etc; make a full use of the system of disclosure of information on enterprises; encourage the public, news media and other social forces to participate in supervision by means of lodging complaints, offering tip-offs, exposure, etc; keep expanding effective channels for finding out acts in violation of law or rules; and share information on regulation and results and punishment through the platform for online review, approval and regulation, to make it convenient for other departments to conduct follow-up regulation in a timely manner. The work of disclosure of information on projects shall be well done, and except secret-involved information, information on review and approval by the competent departments concerned, information on regulation, results of punishment, etc shall be disclosed to society in a timely manner, to make both public inquiry and social supervision convenient.
2. Establishment of the system of abnormal credit records: For any acts of starting construction without authorization in violation of law or rules, organizing execution out of accordance with the content approved, arbitrarily putting into production or operation without passing acceptance appraisal, and other acts in violation of law or rules, they shall all be included into abnormal credit records of projects on the platform for online review, approval and regulation, and abnormal credit records shall be divided into general abnormal credit records and serious abnormal credit records in accordance with the severity of the relevant acts in violation of law or rules. The platform for online review, approval and regulation shall remind or warn the project operators that have had abnormal credit records.
3. Establishment of the system of blacklisting: For any project operator that has had general abnormal credit records many times or has had serious abnormal credit records once, and that has not made correction in accordance with the relevant provisions, the platform for online review, approval and regulation shall include it into the blacklist for disclosure to society. The abnormal credit records of projects and information on blacklisting thereof shall be included into the nationally unified credit information platform, which shall be made accessible to the competent authorities concerned for inquiry. The competent departments concerned shall establish project service fast channels for faith-keeping project operators, in forming mechanisms for encouraging faith-keeping, and adopt joint punishment measures for trust-breaching project operators, in forming long-acting mechanisms for punishing breach of trust featuring “breach of trust somewhere leading to restriction everywhere.”
VIII. Strengthening of Organization of Execution
All regions and all departments shall attach great importance to the relevant work of innovating investment management methods, and establishing mechanisms for regulation over investment projects with vertical and horizontal joint action and coordination, in doing a good job of organization of execution.
1. Strengthening of organization and leadership: The National Development and Reform Commission shall, jointly with other competent departments concerned and local governments, speed up construction of the nationally unified platform for online review, approval and regulation of investment projects; formulate standards and norms; and strengthen guidance over launch by all local regions of the work of regulation over investment projects with vertical and horizontal joint action and coordination. All provincial-level governments shall strengthen overall planning and guidance over the relevant work in their respective local regions, and promptly formulate specific and applicable working schemes and support measures. The project review, approval, ratification and recordation authorities at all levels shall grasp and study in a timely manner the new situations and new questions arising from the process of reform; and strengthen coordination, guidance, supervision and inspection. The competent departments concerned of national land (or marine) resources, urban-rural planning, environment protection, safety regulation, financial regulation, construction, audit, industrial management, etc shall each perform their own duty, each take their respective responsibility, and extend close cooperation, in jointly promoting the relevant work.
2. Guarantee of smooth transition of regulation: Prior to formal entry into operation of the platform for online review, approval and regulation of investment projects, the competent departments concerned shall establish offline joint action mechanisms capable of operating effectively, and systems of day-to-day accounts of projects, immediate mutual recordation and notification of information, etc, and conduct whole-process track management of projects that are in review, approval, ratification or recordation, while the information on review and approval, information on regulation, results of punishment, etc by the competent departments concerned shall be mutually recorded and notified, and shall be copied to the audit departments at the same level. The competent departments concerned of development and reform, national land (or marine) resources, urban-rural planning, environment protection, safety regulation, financial regulation, construction, industrial management, etc can, on the basis of the information systems of their own systems, start off before others in establishing “vertically interconnected” regulatory systems and mechanisms. Local governments at all levels shall launch work thereof in accordance with the realities. Where there are the necessary conditions, they can take the lead in realizing coordination with investment projects on the platform for online review, approval and regulation. Where there no necessary conditions for the time being, they shall speed up development of informatization, to lay the foundation for work in the next step. In the period of transition, project operators shall, in accordance with requirement, submit for recordation basic information on the start of construction of projects, developments and progress in construction and acceptance appraisal upon completion of construction. The platform for online review, approval and regulation shall reserve interfaces for submission by enterprises of the relevant information for recordation, realization by the competent departments concerned and local governments of regulation over investment projects with vertical and horizontal joint action and coordination, and web-based audit; and the contents and formats of the various information thereon shall be well coordinated in advance.
3. Strengthening of publicity of opinions: All regions and all departments shall strengthen publicity in multiple means, to enable the general public, particularly all enterprises, to comprehensively and accurately understand the relevant requirement of streamlining of administration and devolution of power, and combination of devolution of power with control; and guide, supervise and urge the relevant institutions to enhance their awareness about self-regulation and legality, regulate behavior of their own accord, and jointly maintain the fine market order.
General Office of the State Council
March 10, 2015