Jiangsu delegates provincial administrative approval power to FTZ

China (Jiangsu) Pilot Free Trade Zone (FTZ) sees new development: Jiangsu Provincial People’s Government has decided to delegate the first batch of 273 provincial administrative items to the newly established FTZ to enhance the efficiency of the administrative approval system for the benefit and convenience of local enterprises and people, an important measure to build a first-class internationally recognized pilot FTZ in Jiangsu.

On June 25, the Decision of Jiangsu Provincial People’s Government on Delegating the First Batch of Administrative Items to China (Jiangsu) Pilot Free Trade Zone and the list of administrative items were promulgated.

The pilot FTZ is at the forefront of Jiangsu’s reform and opening up. The CPC Jiangsu Provincial Committee and Jiangsu Provincial People’s Government have instructed that all provincial economic and social administrative items that can be delegated to the FTZ shall be delegated. At the end of last year, the Provincial Government Affairs Office took the lead in formulating the list of administrative items. First, according to the principle of “delegating powers to the largest extent”, the provincial departments sorted out six categories of approval powers that are exercised at the provincial level and included all items in the “Administrative Items Database”, except for those concerning safety and other areas, irrelevant to the development of FTZ, and beyond its management capacity. Later, the three areas of the FTZ will select the items in the database based on their actual situation and capabilities. The Provincial Government Affairs Office will work on the items proposed by these areas that are yet to be included in the database along with other provincial departments. Lianyungang area boasts a strong pharmaceutical industry. Therefore, it has applied for the delegation of approval power for “putting on record any changes to responsible persons for quality and production of the pharmaceutical manufacturers”. As a result, the approval power was delegated to the Lianyungang area in a “commissioned” manner.

The delegation of power is targeted and individualized based on the demands of each city in the forms of devolution and commission. Among them, 221 items are delegated to Nanjing area, 124 items to Suzhou area, and 171 items to Lianyungang area.

Relevant persons from the Comprehensive Coordination Bureau of Nanjing Area said that the approval power for the qualification of “Provincial High-tech Business Incubators” and “Provincial University Science Parks” and other items is urgently needed in the pilot FTZ. The delegation of power for review and approval for the establishment of Sino-foreign cooperative vocational skills training programs, preliminary review and approval for the establishment, alteration and cancellation of licenses of representative offices of foreign law firms is conducive to the further opening-up of the FTZ and the improvement of business environment.

These provincial-level administrative items involve 27 provincial-level departments, including the Provincial Development and Reform Commission, the Provincial Department of Education, the Provincial Department of Industry and Information Technology, and the Provincial Department of Public Security. According to the requirements of the Provincial Government, the relevant provincial departments shall complete the delegation of power to the FTZ within 30 working days after the promulgation of the Decision. The three areas shall assume the management responsibilities of the administrative items in accordance with the law under the guidance and supervision of superior departments, formulate a list of powers and responsibilities in time, standardize the administrative approval process, strengthen the coordination between approval and supervision, and ensure that power is exercised in an orderly and efficient matter.

The fishery-related items among the 28 items delegated by the Provincial Department of Agriculture and Rural Affairs are specifically delegated to Lianyungang area and Suzhou area. To deal with some technically demanding matters in the review process, the department will organize training for the FTZ to improve approval services.

According to the staff of the Regulations Division (Administrative Review and Approval Division) of the Provincial Health Commission, from now on, the establishment of Sino-foreign joint venture medical institutions as well as the medical institutions wholly-invested by Hong Kong, Macao and Taiwan at or below the level of grade two can be approved by the FTZ, which will effectively stimulate the vitality of social capital investment in the health sector. The 3 items required for medical institutions to get the Radiation Diagnosis and Treatment Permit have also been delegated to the FTZ to provide the medical institutions with “one-stop” services, so that they can enjoy the greatest convenience in the development of radiation diagnosis and treatment projects from health examination, final acceptance of construction, to qualification licensing in the FTZ.

The Provincial Department of Commerce said that this reform involves foreign investment, foreign economies, trade in service, circulation and other areas that are closely related to enterprises. The delegation of power will allow enterprises to reach the local authorities for approval, which will streamline the approval procedures, shorten the processing time and improve efficiency. In the next stage, the department will guide the relevant cities to establish rules and regulations and improve administrative capacity according to law, and continue to solicit support from the Ministry of Commerce in delegating more power to the pilot FTZ. Meanwhile, the coordination among prior approval, mid-event control and subsequent supervision will be strengthened to ensure that the delegated matters are in good hands and well-handled.

The province also requires Nanjing, Suzhou, and Lianyungang to formulate a list of the administrative items to be delegated to municipal and county levels by referring to the provincial list.