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2007 Assessment

China: Integrity Indicators Scorecard

China: Integrity Scorecard Report > Sub-Category: Business Licensing and Regulation
Indicators		Score
67	Are business licenses available to all citizens?	69
68	Are there transparent business regulatory requirements for basic health, environmental, and safety standards?	100
69	Does government effectively enforce basic health, environmental, and safety standards on businesses?	25

Indicator and sub-Indicator Details

Are business licenses available to all citizens?

67a: In law, anyone may apply for a business license.

Score:

YES

Comments:

References: Chapter 1 of Company Law of the People's Republic of China

67b: In law, a complaint mechanism exists if a business license request is denied.

Score:

YES

Comments:

References: Chapter 1 of Company Law of the People's Republic of China

67c: In practice, citizens can obtain any necessary business license (i.e. for a small import business) within a reasonable time period.

Score:

100

Comments: According to the research of source one, in mainland China it will take 111 days on average to register a business.

References: 1): "What Hinders Us to Establish A Business?" [ LINK ]

2): "Monopoly Squeezes Private Investment" Small businesses and private economy [ LINK ]

67d: In practice, citizens can obtain any necessary business license (i.e. for a small import business) at a reasonable cost.

Score:

100

Comments:

References: 1): "What Hinders Us to Establish A Business?" [ LINK ]

2): "Monopoly Squeezes Private Investment" Small businesses and private economy [ LINK ]

Are there transparent business regulatory requirements for basic health, environmental, and safety standards?

68a: In law, basic business regulatory requirements for meeting public health standards are transparent and publicly available.

Score:

YES

Comments:

References: Chapter 1 of Product Quality Law of The People's Republic of China

68b: In law, basic business regulatory requirements for meeting public environmental standards are transparent and publicly available.

Score:

YES

Comments:

References: Product Quality Law of The People's Republic of China Environmental Protection Law of The People's Republic of China

68c: In law, basic business regulatory requirements for meeting public safety standards are transparent and publicly available.

Score:

YES

Comments:

References: Product Quality Law of The People's Republic of China

Does government effectively enforce basic health, environmental, and safety standards on businesses?

69a: In practice, business inspections by government officials to ensure public health standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments:

References: 1): "Officials of State Food and Drug Administration Indicted" China Economic Times, Feb. 8, 2006 [ LINK ]

69b: In practice, business inspections by government officials to ensure public environmental standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments:

References: 1): Huang Jianliang and Ai Zhixiong "Let Corruption Be Away from Environmental Protection" Procuratorial Daily, July 6, 2007 [ LINK ]

2): Zhu Lijia "From Environmental Corruption to Examine Executive Capabilities" People's Political Scene, July 4, 2007 [ LINK ]

69c: In practice, business inspections by government officials to ensure public safety standards are being met are carried out in a uniform and even-handed manner.

Score:

100

Comments:

References: 1): Li Tieying "There Is Corruption behind accidents" Chutian Jinbao, Aug. 29, 2005 [ LINK ]

2)Li Yizhong "Five Corruption Cases behind Accidents" China Economics News, 2006 [ LINK ]