<img src='https://news.cgtn.com/news/2024-11-22/China-moves-to-optimize-business-environment-driving-growth-1yK6ZtVJt4c/img/8ce6da20da854ea78e96b5d871f9a79d/8ce6da20da854ea78e96b5d871f9a79d.png' alt='View of the Nanjing East Road Pedestrian Street in eastern China's Shanghai municipality, October 30, 2024. /CFP'
At a bustling government service center in Beijing’s Xicheng District, Zhao Peng, manager of a catering company, arrived with a stack of documents, preparing himself for what he thought would be a long, exhausting process of opening a new branch.
But to his surprise, the process was nothing like what he’d expected. A staff member quickly reviewed his paperwork and pointed out that a missing document could be submitted online. “No need to come back,” a staff member told him. “Just upload it from home and your permits will be ready in a few days.”
“With just one trip, I got the new business license and operating permit. It’s so convenient,” Zhao shared the experience with CMG enthusiastically.
Persistent efforts to improve the business environment
Earlier this year, the State Council issued a guideline to promote “one-stop service” and further enhance administrative efficiency. Wang’s experience is one of the examples of Chinese government improving services to optimize business environments.
The initiative aims to simplify procedures for businesses and individuals. The first batch of “one-stop service” measures includes 13 key tasks, eight of which are directly related to business operations, such as corporate information updates, establishing transportation and catering businesses, utility applications, credit restoration, IPO compliance checks, bankruptcy verifications and business deregistration.
Later in May, the State Administration for Market Regulation (SAMR) in collaboration with seven other departments, issued a more specific directive to expand the implementation of “one-stop service” and enhance government service efficiency.
Simplifying procedures for businesses is just one step in China’s broader strategy to optimizing its business environment. China has consistently made various reforms to foster high-quality economic development. The efforts include simplifying approval processes, reducing taxes and fees, accelerating digital governance and drafting the Private Economy Promotion Law.
In September, the SAMR introduced the document named 2024 Key Measures for Optimizing the Business Environment, which aims to address critical issues reported by market participants, focusing on improving fairness and competitiveness in the market, reducing unnecessary administrative interference and eliminating barriers to market entry and business relocation.
At the Third Plenary Session of the 20th Central Committee of the Communist Party of China, China announced that it will publish the Private Economy Promotion Law to provide a more supportive environment for private enterprises. The law is expected to encourage private-sector participation in major national projects and to address systemic challenges faced by private businesses.
Policies aimed at boosting domestic demand, restoring market confidence and supporting private-sector growth have significantly energized economic momentum in 2024.
<img src='https://news.cgtn.com/news/2024-11-22/China-moves-to-optimize-business-environment-driving-growth-1yK6ZtVJt4c/img/e19784a5b08b4fcf9695cbba15aaa0ec/e19784a5b08b4fcf9695cbba15aaa0ec.jpeg' alt='A seminar on promoting private economy is held in Beijing, November 16, 2024. /CFP'
Boosting economic activity
According to data from the SAMR, by the end of September, the number of registered private enterprises in China exceeded 55 million, accounting for 92.3 percent of all businesses and the total number of market entities reached 188 million, a 3.9 percent year on year increase. Within this, enterprises grew by 6.1 percent, while individual businesses increased by 3.0 percent.
Additionally, Li Chao, deputy director of the Policy Research Office of the National Development and Reform Commission, recently noted that private investment in manufacturing grew by 11.4 percent in the first 10 months of 2024, outpacing overall manufacturing investment growth by 2.1 percentage points and foreign trade activity by private enterprises increased by 9.3 percent year on year.
Li emphasized that additional measures are planned to further enhance the private sector’s growth. These include supporting private enterprises in participating in national infrastructure projects such as railways, energy and water resources. Efforts will also focus on improving financing policies for private businesses and standardizing enforcement actions to protect business rights and interests.
Aside from improving business environment for domestic enterprises, China is also taking significant steps for foreign enterprises. Key initiatives include revising and reducing the negative list for foreign investment, expanding market access and lowering entry barriers. China also published Foreign Investment Law to ensure the protection of foreign investors’ legal rights and provide a clear regulatory framework.
Additional measures, such as offering tax incentives for high-tech enterprises and lifting restrictions on foreign investments in manufacturing and services, have further enhanced opportunities for foreign businesses.
According to the Global Investment Trends Monitor by the United Nations Conference on Trade and Development in January, global cross-border investment declined by 18 percent in 2023 after excluding transit investments by multinational corporations. However, China maintained its position as a top destination for foreign investment. In the first quarter of 2024, the number of newly established foreign enterprises increased by 20.7 percent year on year, reaching 12,000, reflecting China’s unwavering commitment to fostering a transparent, fair and law-based business environment.
