It also requires administrative offices to unify their channels for processing applications for approval.

To the general public this represents another welcome reduction in the number of things that require government approval. For those things that still need permission, the procedure will be much simpler. In particular, for citizens who have new undertakings to pursue, life could become much more creative. At the very least, they won't have to waste so much time waiting for government approval.

Only a few months are left for government agencies to sort out the many approval requirements they previously issued for everything from building a new railway to selling steamed buns on the street corner.

The premier has given his subordinates a timely reminder to adjust their portfolios and mindset rather than feeling lost at the tightened rein on licensing which used to be a hallmark of power.

The government's involvement with economic and social affairs today is much less than it used to be, thanks to the country's reform drive over the past 25 years. But sentiments for a more efficient economy and a good government institution inherently require laws to define the degree of influence government officials can exert on everyday life.

As foreign investors grow weary of the bureaucratic procedures that have often soured their endeavours, the domestic population has suffered even more. Rigid approval systems have, by economists"reckoning, cost the country millions of jobs.

Amid growing consequences of the past economic boom, such as unemployment and regional wealth gaps, the administration needs to dismiss itself from the centre of the economic stage and assume a bigger role in public service, which is vital to both social stability and further prosperity.

The licensing law is an answer to the reform that requires, among other things, providing more leeway to accommodate society's creativity and to more effectively check government intervention while improving its efficiency.

It is encouraging that the premier and cabinet have showed their willingness to address the problem.

The deregulation of many previously licensed endeavours will trim the government's work load, and therefore facilitate its long-standing bid to downsize bloated agencies which have even frustrated substantial wage hikes for civil servants.

A restrained approach to market affairs, as provided in the licensing code, will also help the government fulfil its promise to the World Trade Organization of transparent and standard governance.

Investors will no doubt find it easier to conduct business in a market free from unwarranted government intervention.

 (China Daily)