Administrative approval decentralization vs. local protection

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Administrative approval decentralization vs. local protection

Security qualification threshold reduced

Recently, a & s research has learned that in the bidding process of a security project in East China, the signal worthy of attention as well as the change of the game rules in the intelligent engineering market is that the succession of safe cities and intelligent transportation projects only requires building intelligent qualification. Prior to this, many projects required bidders to also require security qualifications and computer system integration qualifications. The specific content is as follows:

In the bidding document of the bidding document No. SGCHW2015-001, the “Bidder's Main Conditions” column states: The category and grade of the bidder’s qualifications: (1) Qualifications or architectural intelligence with Grade 3 or above of professional contracting for building intelligent engineering (2) Qualification category and level of project leader qualification: Registered construction division of Grade I and above of mechanical and electrical engineering and no construction or pre-bid project.

This can be effectively explained by indirectly stating that "the State Council's Decision on the Cancellation and Decentralization of a Batch of Administrative Approval Projects" at the beginning of 2014 has been effectively implemented, and the spring breeze of the reform of China's administrative approval system has reached security. field.

The reduction of the security qualification threshold, under the general trend of IT security, means that more generic IT companies can participate in the market competition in the security field, and the open market may lead to the continued deterioration of the price war of security products. The profit was further squeezed, resulting in a decline in the quality of the project and impairing the development of the industry. For users, they can face more choices, forcing manufacturers to increase product development efforts and accelerate the iteration cycle of technology and products.

Local protectionism needs to be vigilant

Although the State Council and relevant competent authorities have decentralized the relevant examination and approval powers and reduced the industry's access threshold, we also learned from relevant market research that security video surveillance vendors are under great pressure on local protectionism, such as tendering for some projects. During the process, there are strict restrictions on video surveillance products outside the region. There are also requirements for association members and associations to formulate products. At the same time, in the acceptance stage, in addition to the certificates issued by the competent authorities, they must also be issued certificates issued by other departments such as fire control. Seemingly reasonable, in fact, intensified non-market factors in the cost of competition caused by non-market factors, resulting in strong regional market closure, the exemplary role of regional barriers caused by the ultimate damage to the industry's reputation and user experience.

Security video surveillance is related to the safety of society and people's lives and property. Thanks to the large number of people in China and the wide range of regional control, the application of domestic video surveillance technology has taken the lead in the world. Video surveillance solutions provided by some mainstream manufacturers are subject to foreign counterparts. The recognition, excellent product quality, excellent solutions, and suitable prices all give Chinese manufacturers a lot of praise. If we insist on fairness and fairness in market competition, reduce the role of non-market factors in the project process, and let more products with innovation and technological highlights be more applied to project practice, then for China's security industry to catch up with Europe and the United States, leading The development of the world's security industry is just around the corner. A closed market will inevitably lead to the emergence of monopoly phenomena and the stagnation of technological development. Therefore, when the qualification threshold is lowered in the security industry, barriers to non-market factors should be broken and local protectionism should be uprooted.

Administrative approval knowledge

In fact, the reform of China's administrative approval system began in October 2001. Mainly due to the establishment and gradual improvement of the socialist market economy in China, and the wider organization and participation in trade agreements between various regions and countries, the old administrative examination and approval system is unable to adapt to the open market innovation and fairness appealed by the free market. The demand for competition, some of which has become an institutional obstacle to the development of productivity.

In April 2012, the inter-ministerial joint meeting of the reform of the administrative examination and approval system in China held its sixth meeting. This meeting achieved a major breakthrough. The contents of the sixth batch of cancellation approval projects were approved and 314 items were cancelled and adjusted on August 22nd. Departmental administrative examination and approval projects, focusing on investment fields, social undertakings, and non-administrative permit approval projects. In May 2013, 71 items of administrative examination and approval were cancelled, 20 items of administrative examination and approval items were decentralized, 10 items of commendation and award were cancelled, and 3 items of administrative fees were cancelled.

These decentralized administrative approval powers undoubtedly injected a strong boost to the development of various industries and played a positive role in activating public entrepreneurship, market innovation, and increasing employment.

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