The Chinese government knows full well that the rule of law is the key to promoting good governance and the healthy functioning of the economy and society. That is why it has spared no effort to standardize administrative law enforcement across the board to create a better business environment.
In the latest example of this, Premier Li Qiang presided over a special study session of the State Council, China’s Cabinet, on Monday, focused on how to further improve the standards and norms of administrative law enforcement, and tighten its procedures while optimizing methods.
While noting the abuse of discretionary powers and unjust law enforcement practices in some areas, Li called for an improved benchmark system for discretion in enforcement to regulate the exercise of power, and said a special initiative aimed at regulating business-related law enforcement will be launched next year to further optimize the business environment and stabilize expectations and boost confidence.
While stressing the need to strengthen supervision of law enforcement, Li said attention should be paid to the abnormal growth of local incomes by means of fines.
Due to the downward pressure on the economy, many places are facing fiscal shortage, and in order to ease their financial difficulties, some local governments have resorted to “unconventional means “to increase local incomes. For example, in some places, nontax revenues have been on the rise even though local economies are on the decline.
The increase in local fiscal revenue is based on increased taxes paid by enterprises after the growth of their profits. At a time when the economy is facing downward pressures and a large number of enterprises are encountering operational difficulties, it is shortsighted to increase fiscal revenues by slapping fines on market participants. This is tantamount to draining a pond to get all the fish. Such practices run counter to economic laws and should be resolutely stopped. The only way for local governments to increase revenue is to enable all market participants to make profits.
To pursue high-quality development, China must go all out to promote standardized administrative law enforcement. An ideal business environment must be created to activate the enthusiasm of enterprises, and any administrative behavior contrary to this should be stopped. It is good that the top authorities have realized this and are taking action.