Published by ChinaMNC · Qingyang

China Government Information Disclosure: A Practical Guide for Foreign Founders

Understanding China's government information disclosure rules can help foreign founders navigate regulatory requirements and access official information when setting up and running a company in China.

Why Government Information Disclosure Matters for Foreign Founders

When establishing or operating a company in China, foreign founders often need access to official government information—whether it's regulations, policy documents, or procedural guidance. China's government information disclosure system provides a formal channel for obtaining such information. This article summarizes key aspects of that system based on official sources, offering practical guidance for foreign entrepreneurs.

The Legal Framework

The cornerstone of China's government information disclosure regime is the Regulation of the People's Republic of China on Open Government Information (State Council Order No. 711), which took effect on April 15, 2019. This regulation sets out the obligations of government agencies to disclose information proactively and upon request, and it defines the scope, procedures, and fees involved.

To implement this regulation, the General Office of the State Council has issued several normative documents. These cover various operational aspects, such as:

Information processing fees: A notice on the management of fees for processing government information disclosure requests (December 1, 2020).
Annual reporting format: A notice specifying the format for annual government information disclosure work reports (September 29, 2021).
Platform standards: A notice on standardizing government information disclosure platforms (December 3, 2019).
Handling of applications after institutional reforms: An interpretation addressing how disclosure requests should be handled following institutional restructuring (February 11, 2019).
Receiving channels: An interpretation clarifying the channels for submitting disclosure requests (October 24, 2017).
Response responsibilities: An interpretation on which agency is responsible for responding to requests (October 24, 2017).
Annual report filing: An interpretation on filling out annual report items (October 24, 2017).
Delivery of decisions: An interpretation on the delivery of disclosure decisions (October 24, 2017).
Boundary between disclosure and business queries: An interpretation distinguishing government information disclosure from general inquiries (October 24, 2017).

Additionally, there are specific rules for public enterprises and institutions. The General Office of the State Council issued a notice on the measures for formulating information disclosure rules for public enterprises and institutions (December 21, 2020).

Procedural Rules and Interpretations

For foreign founders, understanding the procedural nuances can save time and avoid misunderstandings. The State Council's interpretations provide clarity on several key points:

Where to submit requests: The interpretation on receiving channels clarifies that requests should be submitted through designated channels, which may include online portals, mail, or in-person submissions. Foreign founders should check the specific agency's disclosure guidelines.
Who responds: The interpretation on response responsibilities explains that the agency that holds the information is typically responsible for responding. If a request is misdirected, the receiving agency may transfer it.
What is disclosable: The interpretation on the boundary between disclosure and business queries helps distinguish between formal information disclosure requests and general inquiries. This is important because disclosure requests trigger specific legal procedures and timelines, while general inquiries may not.

Fee Structure

While the regulation generally promotes transparency, it allows for reasonable fees to cover the cost of processing requests, particularly for large volumes or frequent requests. The State Council's notice on information processing fees (December 1, 2020) provides a framework for such fees. In Sichuan Province, the Provincial Department of Finance and the Provincial Development and Reform Commission issued a notice on matters related to government information disclosure processing fees (January 25, 2021), which likely aligns with national guidelines. Foreign founders should be aware that fees may apply and should budget accordingly when making extensive requests.

Annual Reporting and Platform Standards

Government agencies at all levels are required to publish annual reports on their information disclosure work. The format for these reports is standardized by the State Council's notice (September 29, 2021). These reports can be a valuable resource for foreign founders to understand what information is available and how agencies have performed in disclosing it.

Moreover, the notice on standardizing government information disclosure platforms (December 3, 2019) aims to make information more accessible and consistent across different agencies. Foreign founders can typically find disclosure platforms on the official websites of relevant government departments, often under sections labeled "Government Information Disclosure" (政府信息公开).

Practical Steps for Foreign Founders

To effectively use the government information disclosure system, consider the following steps:

Identify the relevant agency: Determine which government body holds the information you need. For company registration, this is often the State Administration for Market Regulation or its local branches. For tax matters, it's the tax bureau.
Check proactive disclosure: Many agencies proactively publish commonly requested information, such as regulations, policies, and procedures, on their websites. Look for sections like "Policies and Regulations" (政策法规) or "Government Information Disclosure" (政府信息公开).
Submit a formal request if needed: If the information is not proactively disclosed, you can file a formal request. The regulation requires agencies to respond within a specified timeframe (typically 20 working days, with possible extensions). Ensure you use the correct channels and provide clear details.
Be prepared for fees: For extensive requests, fees may apply. The fee structure is set by regulations and may vary by province.
Seek professional advice: If you are unsure about the process or need assistance in navigating the system, consider consulting with local legal or business advisors who are familiar with Chinese administrative procedures.

Conclusion

China's government information disclosure system provides a structured way for foreign founders to access official information. By understanding the legal framework, procedural rules, and practical steps, you can better navigate the regulatory environment and make informed decisions for your business in China.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For personalized assistance with company registration and operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.