The Law of the People's Republic of China on Administrative Licenses that will formally come into force on July 1st, 2004 are pushing the further transformation of governmental functions. Governmental departments at all levels of this city have, by now, roughly completed liquidation of all existing administrative licenses, according to sources from the Standing Committee of the Municipal People's Congress on June 10th. Any and all official seals not in line with the Law on Administrative Licenses will cease their effects in administrative review and approval. There are 101 among Shanghai-created 202 administrative licenses ready for cancellations after liquidation, amounting 50% of the total number.
It is reported that those 101 administrative licenses ready to be canceled on July 1st, 2004 are mainly preposition licenses on incorporation of enterprises and organizations created by the local government, licenses for qualification created by the state unitedly, licenses limiting enterprise and individuals from other parts of China from operating or providing services in Shanghai, etc. including but not limiting to the permission by the construction administration authority for building companies from other parts of china entering into shanghai to construct, permission by the construction administration authority for engineering survey and design institutes from other parts of china entering into shanghai to operate businesses of survey and design, and permissions by the health administration authority for urgent and temporary blood collection by the medical first aid institutions.
In order to make up the administrative management vacuum after cancellation of certain administrative licenses, Shanghai is going to adopt the supporting adjustment measures simultaneously upon cancellation of 5 administrative licenses in order to continue the effective administration.