When describing his joint venture with Japanese partner Nissan at the national legislature’s session earlier this week, automaking mogul Miao Wei didn’t expect President Hu Jintao to jump in and ask: “Do you need to get government approval if you plan a technical innovation?”

“The president is keen on providing a favorable environment for domestic enterprises to grow,” Miao, general manager of Dongfeng Automobile Co., Ltd., and an NPC deputy from Hubei Province, told Xinhua Thursday.

To the dismay of government officials present at the conversation, Miao didn’t hesitate to voice his complaint.

“Of course,” he said. “Sometimes we have to wait for half a year to get approval from the central government if the renovation plan involves imports of foreign equipment.”

Hu turned to the officials, saying, “We do feel it’s an urgent need our government transform its work style from intervening in enterprises’ business operations to providing them with timely and efficient service.”

“Whether or when a technical upgrade is needed is up to the companies, not the government,” said Miao, his voice rising slightly.

As a clear signature of the new generation of China’s central leadership that took office a year ago, “serve the enterprises” has evolved from the Chinese Communist Party’s six-decade-old slogan of “serve the people.”

In his government work report delivered last Friday to the National People’s Congress (NPC), the nation’s legislature, Premier Wen Jiabao dedicated an unprecedented four pages to the transition of government functions.

“The key functions of the government should be macroeconomic control, market supervision, management of public affairs and service to the general public,” Wen said later in a panel discussion with the lawmakers.

China has been making painful efforts to downsize its government institutions for decades. After cutting the payroll of central government departments by half under the leadership of former premier Zhu Rongji, township government offices across the country were also reduced to 39,000, or 37 percent fewer than in 1998.

“Four township governments were dismissed every day in China,” said Ying Songnian, an NPC deputy and top law professor with the State Administration College.

“The transformation from issuing administrative orders to providing public service is no easier than downsizing,” said Ying, noting that with vested interests, government departments are reluctant to give up their power in making decisions for enterprises “even if they feel they are short-handed.”

Before embracing a largely freewheeling socialist market economy in the 1990s, China had long adopted a strictly planned economic system copied from the former Soviet Union, under which the government oversaw everything from business operations of enterprises to cradle-to-grave welfare of the people.

“Many government officials today are still unable to abandon their outdated mindset fostered under the planned economy,” Ying said.

Jin Zhiguo, lawmaker and chairman of the board of Shandong-based Tsingtao Brewery, said that complicated government procedures in passport application just foiled his latest attempt to go to Thailand in February for business negotiations.

“Under the existing rules, it takes at least three months for me to obtain government approval for a business trip to Taiwan, “ he said. “Who can wait for such a long time for a fleeting business opportunity?”

As a matter of fact, the overall situation for the business community has been improving over the years, said Ding Haizhong, an NPC deputy and Party secretary of Ma’anshan City, in eastern China’s Anhui Province, noting that local government agencies have been urged to provide help for enterprises.

“Even if they (the enterprises) have loopholes in their management and operation, what the government should do is to help them straighten things out, but not deliberately create troubles or even attempt to profit from this,” he said.

Government bodies and civil servants will be feeling the heat not only from the leadership, but from the people as well. If they don’t, they may find themselves constantly in court because of a law on administrative license is to take effect on July 1.

The new law, covering the government’s right to grant franchises, permits or certificates to businesses and individuals, drastically simplifies the procedures for approvals and abolishes unnecessary restrictions, Professor Ying said. When an approval requires the go-ahead from multiple government departments, they should jointly set up a special office to provide the applicants with one-stop service, he added.

“What we are busy doing is reviewing our current practice in case we’ll be brought to court and have no chance to win,” said Li Chengyu, an NPC deputy and governor of central China’s Henan Province.

Along with improvements in China’s legal system, the political will of the central leadership to build a government for the people has gradually been turned into action, an encouraging development that analysts say is in keeping with the pursuit of the Party and government over the past six decades.

(Xinhua News Agency March 12, 2004)