Annual Review: The Impact of State Council Policy Documents on the Testing Industry in 2015

[Abstract] In 2015, the list of State Council policy documents increasingly included those related to third-party testing. The release of these policy documents had a profound impact on inspection, testing, and certification institutions. A summary of relevant information is as follows:

I. Strengthening Water Quality Testing and Monitoring to Ensure Drinking Water Safety

In January, the State Council issued the "Opinions of the State Council on Further Strengthening Patriotic Health Work in the New Era," requiring the establishment of a comprehensive regulatory system from source water protection and tap water production to safe water supply, strengthening water quality testing and monitoring to ensure drinking water safety.

II. Innovating the Inspection and Quarantine Supervision Model for Service Outsourcing

In January, the "Opinions of the State Council on Promoting the Accelerated Development of the Service Outsourcing Industry" proposed innovating the inspection and quarantine supervision model for service outsourcing, simplifying approval procedures for prototypes, samples, and reagents required for undertaking international service outsourcing business, implementing classified management, and providing customs clearance facilitation.

III. Deepening the Reform Plan for Standardization Work

In March, the State Council issued the "Notice of the State Council on Issuing the Reform Plan for Deepening Standardization Work," urgently requiring the integration and streamlining of mandatory standards, optimization and improvement of recommended standards, and enhancement of the internationalization level of standards. A new standard system is expected to be completed by 2020.

IV. The State Council Issues the Action Plan for Quality Development, Promising Future for the Third-Party Testing Market

In April, the General Office of the State Council issued the "Notice of the General Office of the State Council on Issuing the 2015 Action Plan for Implementing the Outline for Quality Development," which mentioned quality development issues in key areas such as agricultural products, food, pharmaceuticals, food-related products, special equipment, elevator safety, high-speed rail, major projects, water conservancy projects, energy efficiency labeling products, water-saving products, grain, consumer goods, automobiles, atmospheric environment, steel, cement, glass, ceramics, refined oil, consumer goods, e-commerce products, imported meat, dairy products, aquatic products, and edible vegetable oil exporting countries (regions).

These key areas indicate a huge potential market for third-party testing in the future. Those working in quality, testing, and manufacturing industries should focus on improving the quality of these products. The future of third-party testing is promising, and the testing business market is expected to thrive.

V. Vigorously Develop Third-Party Professional Services such as Testing

In June, the State Council issued the "Opinions of the State Council on Several Policy Measures to Vigorously Promote Mass Entrepreneurship and Innovation" (hereinafter referred to as the "Opinions"). The Opinions mentioned vigorously developing third-party professional services. It called for accelerating the development of third-party professional services such as enterprise management, financial consulting, marketing, human resources, legal counsel, intellectual property, inspection and testing, and modern logistics, continuously enriching and improving entrepreneurship services. The Opinions also pointed out the need to explore new models of public services such as entrepreneurship vouchers and innovation vouchers. Localities with suitable conditions should continue to explore providing social training, management consulting, inspection and testing, software development, and R&D design services to entrepreneurs and innovative enterprises through entrepreneurship vouchers and innovation vouchers, establishing and standardizing relevant management systems and operating mechanisms, and gradually forming replicable and scalable experiences.

VI. Vigorously Develop Big Data for Testing and Certification

In July, the State Council issued the "Opinions of the General Office of the State Council on Strengthening Services and Supervision of Market Entities by Utilizing Big Data" (Guo Ban Fa [2015] No. 51) (hereinafter referred to as the "Opinions"). The opinion mentions fully utilizing big data technology to actively understand the common and individualized needs of enterprises in different regions, industries, and types. It calls for proactively providing more targeted services in areas such as registration, market access, government procurement, project investment, policy updates, bidding and tendering, inspection and testing, certification and accreditation, import and export, market expansion, technological transformation, industry alliances, and mergers and acquisitions, thereby promoting sustainable enterprise development.

VII. Centralizing Environmental Monitoring Authority to Eradicate Data Falsification

In September, the State Council issued the "Construction Plan for the Ecological and Environmental Monitoring Network" (hereinafter referred to as the "Plan"). The Plan requires the Ministry of Environmental Protection to appropriately centralize the authority for ecological and environmental quality monitoring to accurately grasp and objectively evaluate the overall state of the national ecological and environmental quality.

One of the highlights of this Plan is ensuring the centralization of monitoring authority, strengthening the supervision and inspection of environmental monitoring data, and focusing on rectifying fraudulent and illegal activities such as tampering with and falsifying monitoring data. After centralizing national authority, the system changes to "whoever assesses, monitors," eliminating opportunities for falsification and tampering, and effectively preventing administrative interference with monitoring data from assessments and evaluations. The implementation of this system will significantly reduce the possibility of local governments and enterprises falsifying environmental data, forcing governments and enterprises to make significant efforts and take concrete actions in environmental protection.

VIII. Comprehensive Review of Existing Mandatory Standards and Plans

In September, the General Office of the State Council issued the "Action Plan for Implementing the 'Deepening Standardization Work Reform Plan' (2015-2016)" (hereinafter referred to as the "Action Plan"). To effectively implement the various reform tasks deployed in the State Council's "Deepening Standardization Work Reform Plan" (hereinafter referred to as the "Reform Plan"), especially the work arrangements to be promoted in the first phase (2015-2016), the State Administration for Quality Supervision, Inspection and Quarantine and the State Standardization Administration organized the drafting of the "Action Plan."

The "Action Plan" details 14 specific tasks, putting forward specific implementation requirements for major reform measures such as mandatory standard reform, recommended standard reform, pilot reforms of group standards and enterprise standards, internationalization of standards, and the construction of a coordinated mechanism, clarifying the division of responsibilities for each reform task.

Regarding the reform of mandatory standards, the following measures are proposed: 1) Research and formulate a work plan for the integration and streamlining of mandatory standards; 2) Conduct a comprehensive review and evaluation of existing mandatory standards and plans; 3) Conduct pilot projects for integration and revision in the industrial sector; 4) No new formulation or revision plans will be issued by various departments and regions; and 5) Formulate management measures for mandatory national standards.

IX. Leveraging the Role of Third-Party Testing Institutions

In September, the General Office of the State Council issued an opinion on promoting online and offline interaction to accelerate the innovative development and transformation and upgrading of commerce and trade. Among these measures, it was explicitly stipulated that industry organizations should be cultivated and the role of third-party inspection, testing, and certification institutions should be leveraged.

X. 89 Intermediary Service Items for Administrative Approval by State Council Departments Eliminated, Many Involving Testing

In October, the State Council issued document No. 58 of 2015, namely, the "Decision on the First Batch of Cleaning Up and Standardizing 89 Intermediary Service Items for Administrative Approval by State Council Departments" (hereinafter referred to as the "Decision"). The State Council decided to clean up and standardize the first batch of 89 intermediary service items for administrative approval by State Council departments, which will no longer be used as conditions for accepting administrative approvals. This article summarizes these 89 items, many of which involve the testing industry.

XI. The Third-Party Testing Market in the State Council's Notice on the Provincial Governor Responsibility System for Food Security

In November, the General Office of the State Council issued Document No. 80 (2015), "Notice of the General Office of the State Council on Issuing the Assessment Method for the Food Security Responsibility System" (hereinafter referred to as the "Notice").

The Notice stipulates that food security will be directly linked to the performance assessment of provincial governors, and the market demand for testing and monitoring services related to food quality and safety, farmland protection, and the improvement of the food quality and safety supervision and guarantee system will increase accordingly.

Related aspects in the testing and monitoring field:

1. In protecting farmland, it stipulates: the establishment of a farmland quality monitoring network;

2. In strengthening source control, it stipulates: prevention and control of farmland soil pollution;

3. In improving the food quality and safety supervision and guarantee system, it stipulates: the construction of food quality and safety supervision agencies and quality monitoring agencies, and the guarantee of funding for testing and monitoring services.

XII. Explicitly Proposes the Introduction of a Third-Party Testing and Certification Mechanism

On November 22, the General Office of the State Council issued guiding opinions on accelerating the development of consumer service industries and promoting the upgrading of consumption structure. The document explicitly proposes the introduction of a third-party testing and certification mechanism and the improvement of the quality standard system.

Among the measures to improve the consumption environment, the State Council explicitly proposed introducing a third-party testing and certification mechanism; in improving the quality standard system, it called for the formulation and implementation of national service industry standard plans and annual plans. It also called for implementing a service standard system construction project, accelerating the development of key standards in fields such as domestic services, elderly care, health, sports, culture, and tourism. Furthermore, it called for improving the planning standards for supporting public facilities in residential areas (small communities) to provide a basis for the construction, management, and services of related facilities in the life service industry. It also called for actively cultivating a technical team for standardization work in the life service industry. Finally, it called for continuing national-level service industry standardization pilot projects and summarizing and promoting best practices.

XIII, the State Council issues another document, highlighting the significant potential of third-party testing.

Following the State Council's issuance of opinions on promoting the upgrading of consumption structure, on November 23, the State Council issued another document, actively leveraging the leading role of new consumption to accelerate the formation of new supply and new driving forces. The document repeatedly mentioned the key development of testing and certification, standards construction, and inspection and quarantine.

XIV. State Council Decree: Reform the Inspection and Quarantine System and Strengthen Cooperation in Customs and Inspection Areas

In December, the State Council issued Decree No. 665, proposing several opinions on accelerating the implementation of the free trade zone strategy, which explicitly proposed reforming the inspection and quarantine system and strengthening cooperation in customs and inspection areas.

XV. State Council Approves Shanghai's Pilot Reform of "Separation of Licenses and Permits," Inspection and Testing to Take on Supervisory Functions

In December, the State Council approved Shanghai to conduct a pilot reform of "separation of licenses and permits." The document explicitly proposed strengthening the supervisory functions of inspection and testing institutions. Social supervision will be implemented with the participation of social forces as an auxiliary measure. Regulatory departments may legally entrust qualified professional technical institutions to conduct inspections, tests, and certifications. The supervisory role of professional service institutions such as notary offices and inspection and certification institutions in safeguarding investors' rights in the authentication market will be actively leveraged.