China strives to build world-class business environment

What can a sound business environment create?

China strives to build world-class business environment
A self-employed individual receives business licenses at a government service center in Yuquan district, Hohhot, north China's Inner Mongolia autonomous region, March 7. 2024. (Photo by Ding Genhou/People's Daily Online)

Estimated reading time: 4 minutes

By Li Haoran, People's Daily

As the first large chemical production base in China operated solely by a foreign company, BASF's Verbund site in Zhanjiang, south China's Guangdong province has experienced rapid development.

Its first batch of production facilities were set up in 2020, and this January, its thermoplastic polyurethane plant was put into operation.

Such a rapid progress is attributed to the government's efforts to improve market access and provide solid policy support, said an executive of BASF.

"We had a global project that required certifications from over 10 departments, which would normally take at least a month to complete. However, thanks to the efforts made by the local government, we obtained these documents in three days," said an executive of a private enterprise in east China's Zhejiang province, expressing appreciation for the government's responsiveness and assistance in solving the enterprise's problems.

A sound business environment is a prerequisite for unleashing the potential for economic growth and stimulating market vitality; optimizing business environment is key to boosting the confidence of entities and expanding opening-up.

China has continuously strengthened the construction of a market-oriented, law-based and internationalized business environment, to enhance its attractiveness to domestic and foreign factors of production.

In recent years, China has attached great importance to optimizing its business environment, and it has seen a significant rise in its global ranking in this regard.

For instance, the country implemented a regulation on optimizing the business environment; the Communist party of China Central Committee and the State Council issued the Opinions on Accelerating the Construction of a Unified National Market; China released an action plan to steadily promote high-level opening up and make greater efforts to attract and utilize foreign investment.

Recently, a series of measures have been implemented, sending a clear signal that China remains firmly committed to expanding high-level opening-up and continuously fostering a world-class business environment. These efforts include launching five new measures to facilitate entries of foreigners, revising the national negative list for foreign investment, and accelerating the implementation of 24 measures to stabilize foreign investment.

Optimizing business environment is not just about offering "favors," but more importantly, building "trust." Stable expectations come from a convenient, efficient, stable and transparent business environment featuring fair competition, as well as credible policy measures.

That's why some companies would rather bear higher land and labor costs than accept subsidies and incentives to operate in regions with relatively backward business environments.

A 2023 survey on business environment conducted by the All-China Federation of Industry and Commerce, which covered 10,000 private enterprises, indicated improving satisfaction of private enterprises with the improvement in China's business environment. These enterprises also showed expectations for further optimization of the business climate in China.

Currently, various regions in China are taking concrete measures to provide fertile ground for the growth and development of all kinds of business entities, promptly addressing their urgent concerns and expectations, and maintaining the stability and continuity of pro-business policies.

Beijing proposed to make optimizing business environment a top priority, with an aim to build better the brand of "Beijing Service." Striving to learn businesses' experiences and feedback, Shanghai has revised its action plan for improving business climate for 7 times. Wuhan, central China's Hubei province, held a citywide conference on optimizing business environment, proposing to resolutely eliminate implicit barriers to market access.

Facts have proved that a favorable business environment can provide solid support for the development of all kinds of business entities.

China is resolutely committed to comprehensively deepening reform, implementing practical measures, and making every effort to optimize the business environment, so as to continuously boost market confidence and stimulate market vitality.

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