Summary

China’s State Council recently announced a list of 47 professional qualification and certifications to be cancelled soon, including professional qualifications for web content editors, tenderers, buyers and florists. Since 2014, China has successively cancelled six batches of professional qualifications and licenses, accounting for 319 qualifications or 52 per cent of all government-certified qualifications.

These changes are a result of a project led by the Ministry of Human Resources and Social Security (MOHRSS) to conduct a “comprehensive clean-up” of professional qualifications and licenses. By eliminating unnecessary licenses and qualifications, the Ministry aims to reduce institutional transaction costs and reduce the threshold for employment and entrepreneurship. This is particularly important for increasing the employment of vocational college and secondary school graduates, as well as the reorientation of workers in industries in the process of cutting excess capacity.

The MOHRSS is also in the process of publishing a list of national occupational qualifications. Government ministries and departments will not be allowed to require professional licenses or certify and accredit qualifications outside of this list.

In the longer term, China is working on establishing a National Vocational Qualification Framework based on scientific principles and standardized operations in accordance to the law and regulations. In adjusting the structure of vocational education, the government will place more importance on enhancing students’ practical capabilities and basing vocational education on genuine demand for vocational skills.

Analysis by Kevin Prest and Xiaoxiao Liu

The cancelled qualifications were all issued by various national or local government departments; this change does not affect the position of privately-operated or overseas qualifications. It is still unclear whether the removal of these government-run qualifications will create a gap for private or overseas professional qualifications. However, when the MOHRSS publishes its list of occupational qualifications, this may make the current market situation clearer for UK providers of professional qualifications.

A large part of the MOHRSS’s rationale for cancelling these qualifications is to increase the ability of people to enter new industries by eliminating unnecessary licenses. Professional licenses “with no biding to legal regulations or official decisions by the State Council” or which are “not closely relevant to the national security, public safety, personal and property security for citizens” will both be cancelled.

However, most of the cancelled qualifications are voluntary qualifications rather than compulsory licenses. In particular, qualifications set by local levels of government are among those targeted for removal, likely in order to simplify the environment for professional qualifications in China and so promote employment.

Sources:

1. http://www.gov.cn/xinwen/2016-06/01/content_5078727.htm

2. http://www.gov.cn/zhengce/content/2016-06/13/content_5081742.htm#rd

3. http://news.xinhuanet.com/politics/2016-06/03/c_129037000.htm