Opinions of the State Council on Further Optimizing the Market Environment for the Merger and Restructuring of Enterprises
Opinions of the State Council on Further Optimizing the Market Environment for the Merger and Restructuring of Enterprises
Opinions of the State Council on Further Optimizing the Market Environment for the Merger and Restructuring of Enterprises
Guo Fa [2014] No. 14
March 7, 2014
The people's governments of all provinces, autonomous regions and municipalities directly under the central government, all ministries and commissions of the State Council, all institutions directly under the State Council,
Merger and restructuring are effective measures for enterprises to strengthen resource integration, realize fast development and increase competitiveness. They are an important way of resolving serious excessive capacity generation conflicts, optimizing industry structure and increasing development quality and efficiency. In recent years, the pace of merger and restructuring in China has accelerated, but enterprises engaged in mergers and restructuring meet with various difficulties including the need to obtain a variety of approvals, difficulty in obtaining finance, heavy burden, unsound service system, incomprehensive systems and mechanisms and inter-jurisdictional issues. In order to thoroughly uphold the spirit of the 18th CPC National Congress and the Second and Third Plenary Sessions of the 18thCentral Committee of the Communist Party of China, and to conscientiously give effect to the policies of the Central Committee and the State Council, to create an excellent market environment and to fully give effect to the key functions of merger and restructuring, the following opinions are hereby promulgated:
Article 1 Key goals and basic principles
1. Key goals
(1) Further improvement of systems and mechanisms. The progressive reduction in relevant government approvals required by enterprises engaged in merger and restructuring and an increasing efficiency in successful approvals shall in turn progressively optimize market systems for merger and restructuring and eliminate market barriers.
(2) Continue to improve the policy environment. Further improve financing, fiscal policy and tax, land and employment policies that are beneficial to merger and restructuring in order to gradually resolve financing difficulties and other heavy burdens borne by relevant entities and constantly move towards a robust service environment for merger and restructuring.
(3) Allow merger and restructuring to achieve new success. The merger and restructuring market is becoming more active. A group of enterprises have become energized through merger and restructuring. Large enterprises and groups have developed international competitiveness, industry competitiveness has been further enhanced, efficiency of resource allocation has markedly increased, excessive capacity problems have been resolved and industry structure has continued to be optimized.
2. Basic principles
(1) Respect enterprise autonomy. Effectively mobilize enterprise initiative, ensure that enterprises have autonomy in decision-making in voluntary participation in merger and restructuring, adhere to marketization and avoid "match-making" contrary to enterprises' own wishes.
(2) Give full effect to the functions of the market. Give play to the decisive function in market resource allocation, accelerate the establishment of fair, open and transparent market rules, eliminate systematic barriers to merger and restructuring, optimize an integrated, open, competitive and orderly market system.
(3) Improve government administration and services. Eliminate barriers to merger and restructuring and repeal provisions that unreasonably add to the burdens of enterprises engaged in merger and restructuring. Resolve the prominent problems enterprises encounter in merger and restructuring.
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