In a bid to improve the business environment, a city in eastern Henan province has announced that the first 20 days of each month will be a “business tranquility period” when there will be no local law enforcement actions taken against businesses.

According to the new policy implemented on July 7, businesses will not see any type of administrative enforcement actions taken against them, including regular inspections or administrative punishments, except for major emergencies and enforcement actions taken by government departments above the local level.

The new policy also requires local enforcement departments to submit their plans to Shangqiu’s designated office tasked with improving the business environment three days before taking any enforcement action outside this “tranquility period.”

“The policy mainly aims to regulate some administrative departments carrying out repetitive enforcement actions that interfere with business operations,” an employee at the business environment office told China Newsweek.

Shangqiu is an ancient capital city with a population of 7.73 million people. Other cities in China have also implemented the policy.

Since February, Juye County in eastern Shandong province has also established a “business tranquility period” during the first 20 days of each month, while Linyi City in Shandong started its “business tranquility period” at the end of last month. Zhangjiakou City in Hebei province announced in April its temporary policy for every Monday, Friday, and public holiday for one year. 

These measures have elicited a mixed response, with China’s state broadcaster CCTV arguing that a “business tranquility period” is unnecessary as long as inspections are timed appropriately. A commentary from state-run Xinhua News Agency argues that the period is “too long and the scale is too large.”

“It is unavoidable that people worry that the business tranquility day will become a ‘protection day’ for companies to avoid inspections,” the commentary says.

Netizens have also raised doubts about the effectiveness of the policy, with some describing the “business tranquility period” as the time for businesses to run afoul of local regulations.

The Shangqiu office has confirmed that there have been problems since the new policy was implemented, including complaints from members of the public not being dealt with as they coincided with the “business tranquility period.”

In response to public concerns, the Shangqiu business environment office announced on Sunday that issues requiring immediate inspection such as production safety, food safety, and emergencies will not be restricted by the “business tranquility period.”

Editor: Vincent Chow.

(Header image: An exterior view of Shangqiu Railway Station, Henan province. VCG)