A new law enacted by China's legislature aims to remove much of the red tape associated with running a business, and do away with numerous opportunities for corrupt officials to make money from issuing licenses and franchise rights.

　　The Standing Committee of the National People's Congress adopted a law on administrative licenses yesterday. It embodies the principle of rigorously restricting the power of government bodies and will facilitate the country's uphill battle against corruption.

　　The law of 83 articles in eight chapters, with a decree by President Hu Jintao, will take effect on July 1, 2004.

　　The new law covering the government's right to grant franchises, permits or certificates to businesses and individuals "will have an unprecedented impact on the relations between govern-ment bodies and common citizens," Professor Ying Songnian said.

　　Ying, a member of the PC Civil Affairs Committee and dean of the department of law of the State Administrative College, helped write the draft's first version.

　　The State Council, or the Chinese Cabinet, has found that its commissions and ministries used to empower themselves with a total of 3,000 rights in granting franchises or permits.

　　"On the one hand, the government bodies were managing many things that they couldn't manage or should manage," Ying said.

　　He noted that government officials had found the right to granting franchises and permits very profitable for their departments, and themselves.

　　Ying said that the State Council launched its massive reform measures in 2001 after it discovered a large number of problems in a survey for the legislation. So far, commissions and ministries of the State Council have given up rights to administer 1,195 franchise rights, and handed 82 items to industrial associations and other intermediate agencies.

　　However, the legislation adopted yesterday will ensure that such administrative reform continues in the right direction, lawmakers and legal experts said.

　　Under the new law, commissions and ministries of the State Council will no longer have the right to empower themselves with franchising rights, and fee collection practices will be abandoned.

　　A vital feature of the new law highlights "higher efficiency and convenience for ordinary common people," said Wang Yongqing, deputy director of the Legislative Affairs Office of the State Council.

　　The law simplifies the procedures for administrative licenses and abolishes unnecessary restrictions against applicants, and makes the government administration the last option only after all other means have failed.

　　A government license should only be required by a citizen if his business is related to national or economic security, public interest, personal rights and property of other citizens, exploitation of rare natural resources and the distribution of limited public resources, according to the law.

　　To avoid the misuse of power by government bodies, franchises for the distribution of limited resources should be granted through bidding, auction or competition, it notes.