A Study On The Reform Of Government Approval System In The Utilization Of Foreign Capital

The level of utilization of foreign capital is an important index to measure open economy construction achievements. In the early days of reform and opening up, the market’s spontaneous role cannot guarantee the effective allocation of resources. At this time, administrative examination and approval has played important and positive role as an efficient way to achieve attain the above object. But with the constant improvement of market economy and the deepening process of opening to the outside world, especially now, foreign economy has been indispensable part of Chinese national economy, approving at all layers not only reduces the efficiency of the government administration,but also stifles the vitality of the market to some extent. We must face up to the flaw and insufficiency of current examination and approval system, adjust the relevant policies of foreign investment. First of all,it meets the need of improving the level and efficiency of foreign capital utilization.Furthermore, Third Plenum of 18th CPC Central Committee points out that we should transform government function and work style,standardize administrative behavior, simplify the procedures, improve governance capability. Administrative approval reform is the core spirit of the communique. Last but not least, it’s also the key link for the government to adapt to new normal of economic growth and serve the economic development.This paper, mainly taking Yangzhou city as an example, makes full use of the government reengineering theory, new public management theory, etc. At the same time, understanding the course of foreign capital utilization, current situation of administrative approval system, this paper tries to identify the problems existing in the administrative approval system. Referencing the advanced experience and innovation practice of other cities, the author makes some recommendations, mainly including:set up a specialized institution for foreign investment approval, classify foreign capital, explore foreign enterprise investment "negative list" management mode, implement electronic registration and simultaneous approval management, formulate standardized registration process, shorten the time of examination and approval, establish incentive mechanism, strengthen supervision by establishing long-term mechanism, comply credit system for foreign capital enterprise and so on. This paper should play positive role in helping government curb the power of bureaucrats, rein in government spending, speed up the function transformation, reform administrative approval system in the foreign capital utilization and realize the harmonious development of service-oriented government and regional economy.