Wang, a partner of Beijing King & Wood Law Firm, said that the original intention of the "alley" system was to prevent vicious competition among enterprises in China, but in practice, especially in overseas bidding projects, the "alley" system affected the transaction certainty and timetable of China enterprises, which made China enterprises at a disadvantage compared with other overseas bidders in overseas bidding projects and had to pay extra "China cost". According to Zhao Qing, chief consultant of Mei Sen, and Chen Dajiang, managing partner of Pantech Capital, canceling the "small path" system is a major measure of the National Development and Reform Commission to "simplify administration and decentralize power".
In order to further improve the convenience, the new method also cancels the local preliminary examination and reporting link, and clearly stipulates that local enterprises can apply directly to the National Development and Reform Commission. In this regard, Zhao Qing said that this is a great benefit for domestic entities registered in second-and third-tier cities, which can reduce the risk that the company will default on the approval time in China and lead to the reverse payment of the breakup fee.