Approval Authority for Cotton Processing Line Quotas Delegated from Three Departments to Local Governments

The National Development and Reform Commission, the State Administration for Industry and Commerce and the General Administration of Quality Supervision, Inspection and Quarantine issued a notice on October 15. In accordance with the State Council's requirements on streamlining administration, delegating power, reducing prior approval and strengthening ongoing and post-event supervision, and after study, it was decided that starting this year the approval authority for the total quota of cotton processing production lines will be delegated to the provincial-level local development and reform commissions, industry and commerce bureaus, and quality and technical supervision bureaus.

The notice states that the number of cotton processing production lines must be reasonably determined. The basic principles of “unified planning and rational layout”, “total volume control and appropriate competition” and “giving priority support to major cotton-producing areas” should continue to be followed, the cotton processing layout should be optimized, existing processing capacity should be used in a coordinated way, and disorderly expansion of processing capacity caused by duplicate investment should be avoided.

In addition, follow-up management must be effectively strengthened. All localities should establish a dynamic adjustment mechanism for the entry and exit of cotton processing enterprises, encourage enterprise mergers and restructuring, and avoid major structural shortages of cotton processing capacity in certain areas; they should work with relevant parties to strengthen supervision and management of the cotton market and cotton quality, maintain normal circulation order in the cotton market, and create a favorable market environment for the smooth implementation of the pilot reform of the cotton target price.