China improves business environment for higher productivity
By Wu Qiuyu
A good business environment yields sound productivity
and competiveness. Improvement of the business environment is an on-going
process, and there is always room for things to become better.
Earlier this month, the State Council, China's
cabinet, passed a draft of regulations on improving business environment.
The draft focuses on the demand from market players, aims
to transfer government functions, and institutionalizes China’s successful
experience in deepening the reform of streamlining administration, delegating
powers and improving regulation and services, and puts the Chinese practice on
par with the world’s advanced level.
It also establishes basic institutional norms in business
environment that give equal treatment to domestic and foreign enterprises.
The move, which demonstrates the country’s
determination to further optimize business environment and conforms to the
expectations of market entities, has gained wide applause.
China has made notable achievements in
improving business environment. Faced by increasing internal and external risks
and challenges, the country puts great emphasis on building a sound business
environment for high-quality economic growth.
It has taken measures to improve business environment,
including further streamlining administration and delegating powers,
simplifying approval procedures nationwide and cutting taxes and fees.
In the first seven months of the year, tax cuts and
fee reductions saved businesses by around 1.349 trillion yuan ($190.7 billion),
representing a great burden off the shoulders of the real economy and more
dividends for private enterprises.
The country has also rolled out the Foreign Investment
Law, and comprehensively implemented the system of pre-establishment national
treatment plus a negative list across the board. These policies have constantly
opened up new prospects for high-quality economic development.
According to the Doing Business 2019 report released
by the World Bank, China moved up 32 spots to the 46th place compared with the
last year, becoming one of the top improvers.
At present, China's economy has shifted from a stage
of high-speed growth to one of high-quality development. It is undergoing
changes in quality, efficiency and impetus, during which the comparative
advantages of labor, land and other production factors are gradually weakening,
and institutional supply has become an important core competitiveness.
Against this backdrop, only by constantly creating new
institutional advantages can the country enhance the attractiveness, creativity
and competitiveness of its economy and make it stable and far-reaching.
The rule of law is an important tool to improve
business environment and an important part of business environment.
The draft on improving business environment, which
offers market entities institutional guarantee when they invest and develop
business in China, puts the improvement of business environment on the track of
the rule of law, and gives play to the role of the law in guiding, pushing
forward, regulating and guaranteeing reforms. It could also inject vitality
into the market and endogenous impetus into the economy.
The draft of regulations to improve business
environment, the first of this kind established through government legislation,
manifests China’s resolution to continue deepening reform and expanding
opening-up, and the equal treatment the country gives to various market
players. It is vital in stabilizing market expectations and boosting confidence
for development.
At present, to improve business environment serves as
an important foundation for stabilizing employment, finance, foreign trade,
foreign investment and market expectations as China is faced by increasing
external challenges. It also bears special significance for the
country to cope with the current downward economic pressure.
Through improving business environment on a regular
basis and creating a better environment so that market vigor could be
unleashed, China is bound to open up brighter prospects for high-quality
economic development.
Staff members of the Qingjiangpu tax bureau of Huai’an
city, east China’s Jiangsu province inspect tax and fee reduction at a pharmaceutical
company on July 18, 2019. (Wang Hao/People’s Daily Online)
China improves business environment for higher productivity
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