• Red flags flutter in the wind near the Chinese national emblem outside the Great Hall of the People.

Red flags flutter in the wind near the Chinese national emblem outside the Great Hall of the People. (Photo : Getty Images)

Chinese Premier Li Keqiang urged for less red rape as well as an enhanced regulation and services to promote a healthy economy during a national teleconference held on May 9.

A report from state-run Xinhua News Agency revealed Li's previous statements during a meeting earlier this month that calls for a decrease in red tape incidents in the government.

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According to the report, the country has still so much to improve on in terms of fair delivery of services and implementation of the law, and Li wants that to change.

Premier Li's Demand

"Although the economy operated steadily in the first quarter, with improvements in structure and quality and better-than-expected indicators, downward pressure remains considerable and the foundation for economic stabilization and improvements has yet to be consolidated," Li stated.

Li's statement comes amid a decline in the country's original international competitiveness.

Because of this, Li demanded that government officials level the playing field for all entrepreneurs in order to prevent foreign-funded businesses to pullout from the country.

"This is associated with changes in our resources, sluggish external demand and business environment," he explained. "We should guide some of them to move from eastern coastal areas to the central, western and northeastern regions."

Red Tape in China

According to the business magazine Entrepreneur, China is among the most difficult places to start a business, forcing businessmen to resort to red tape.

Citing the World Bank Group, the magazine said that the Asian giant is at 90th place in terms of ease of doing business and 128th place in starting a business all over the world in 2015.

While China's rank increased by 23 spots from the previous year, it is still a significant number that led the magazine to give American entrepreneurs with very few options.

According to Entrepreneur, the "hard way" entails the traditional process of starting a business, which includes a total of 11 procedures, a hefty number compared to the international average of 4.8 for other countries.

The magazine also noted that even things as simple as signing documents will "bog you down."

"The signature on each has to be exactly the same, or the authorities will reject whatever it is you're trying to do. By 'exactly the same,' I mean it needs to be a perfect match," it explained.

Because of this, many business enthusiasts tend to "make it easier" and hire "consultants" to help them with the processes, which oftentimes lead to red tape.