China takes steps to improve the business environment, boosting economic expansion
China has consistently implemented a range of reforms aimed at promoting high-quality economic development. These initiatives encompass streamlining approval processes, cutting taxes and fees, enhancing digital governance, and formulating the Private Economy Promotion Law.
TroibNews 
At a busy government service center in Beijing's Xicheng District, Zhao Peng, the manager of a catering company, arrived equipped with a pile of documents, ready for what he anticipated would be a lengthy and tiring procedure to open a new branch.
To his astonishment, the process unfolded quite differently than he had imagined. A staff member swiftly assessed his paperwork and informed him that he could submit a missing document 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 excitedly with CMG.
Ongoing efforts to improve the business environment
Earlier this year, the State Council released guidelines to enhance "one-stop service" and boost administrative efficiency. Zhao's experience exemplifies how the Chinese government is working to enhance services and optimize the business landscape.
This initiative seeks to streamline processes for both businesses and individuals. The initial set of "one-stop service" measures encompasses 13 key tasks, eight of which pertain directly to business operations. These include updating corporate information, setting up transportation and catering businesses, applying for utilities, restoring credit, ensuring IPO compliance, verifying bankruptcy, and handling business deregistration.
In May, the State Administration for Market Regulation, in conjunction with seven other departments, issued a more detailed directive aimed at expanding the implementation of "one-stop service" and improving government service efficiency.
Revamping procedures for businesses is one dimension of China’s broader strategy to enhance its business climate. The country has consistently introduced various reforms to advance high-quality economic development. These reforms involve simplifying approval processes, lowering taxes and fees, expediting digital governance, and formulating the Private Economy Promotion Law.
In September, the SAMR unveiled the document titled 2024 Key Measures for Optimizing the Business Environment, targeting significant challenges reported by market participants. The focus is on enhancing market fairness and competitiveness, diminishing unnecessary administrative interference, and dismantling barriers to market entry and business relocation.
At the Third Plenary Session of the 20th Central Committee of the Communist Party of China, it was announced that China would introduce the Private Economy Promotion Law, designed to create a more favorable environment for private enterprises. This law is expected to motivate private-sector involvement in major national initiatives and address systemic issues faced by private businesses.
Policies aimed at bolstering domestic demand, restoring market confidence, and supporting private-sector expansion have significantly energized economic activity in 2024.
Stimulating economic activity
Data from the SAMR indicates that by the end of September, the number of registered private enterprises in China surpassed 55 million, accounting for 92.3 percent of all businesses. The total number of market entities reached 188 million, marking a 3.9 percent year-on-year increase. Among these, enterprises grew by 6.1 percent, while individual businesses saw a 3.0 percent increase.
Furthermore, Li Chao, the deputy director of the Policy Research Office of the National Development and Reform Commission, highlighted that private investment in manufacturing surged by 11.4 percent during the first ten months of 2024, outpacing overall manufacturing investment growth by 2.1 percentage points. Additionally, foreign trade activities by private enterprises rose by 9.3 percent year on year.
Li emphasized that further measures are in the pipeline to enhance private sector growth, including supporting private companies in participating in infrastructure projects such as railways, energy, and water resources. There will also be initiatives to improve financing policies for private businesses and standardize enforcement practices to protect business rights and interests.
In addition to improving the business environment for domestic firms, China is taking substantial steps to support foreign enterprises as well. Key initiatives include revising the negative list for foreign investment, increasing market access, and reducing entry barriers. The publication of the Foreign Investment Law seeks to protect the legal rights of foreign investors and establish a clear regulatory framework.
Additional efforts, such as providing tax incentives for high-tech enterprises and loosening restrictions on foreign investments in manufacturing and services, have further enhanced opportunities for foreign businesses.
According to the Global Investment Trends Monitor released by the United Nations Conference on Trade and Development in January, global cross-border investment fell by 18 percent in 2023 when excluding transit investments by multinational corporations. Nonetheless, China has retained its status as a top destination for foreign investment. In the first quarter of 2024, the number of newly established foreign enterprises grew by 20.7 percent year on year, reaching 12,000, reflecting China's steadfast commitment to fostering a transparent, fair, and law-based business environment.
Mathilde Moreau contributed to this report for TROIB News
To his astonishment, the process unfolded quite differently than he had imagined. A staff member swiftly assessed his paperwork and informed him that he could submit a missing document 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 excitedly with CMG.
Ongoing efforts to improve the business environment
Earlier this year, the State Council released guidelines to enhance "one-stop service" and boost administrative efficiency. Zhao's experience exemplifies how the Chinese government is working to enhance services and optimize the business landscape.
This initiative seeks to streamline processes for both businesses and individuals. The initial set of "one-stop service" measures encompasses 13 key tasks, eight of which pertain directly to business operations. These include updating corporate information, setting up transportation and catering businesses, applying for utilities, restoring credit, ensuring IPO compliance, verifying bankruptcy, and handling business deregistration.
In May, the State Administration for Market Regulation, in conjunction with seven other departments, issued a more detailed directive aimed at expanding the implementation of "one-stop service" and improving government service efficiency.
Revamping procedures for businesses is one dimension of China’s broader strategy to enhance its business climate. The country has consistently introduced various reforms to advance high-quality economic development. These reforms involve simplifying approval processes, lowering taxes and fees, expediting digital governance, and formulating the Private Economy Promotion Law.
In September, the SAMR unveiled the document titled 2024 Key Measures for Optimizing the Business Environment, targeting significant challenges reported by market participants. The focus is on enhancing market fairness and competitiveness, diminishing unnecessary administrative interference, and dismantling barriers to market entry and business relocation.
At the Third Plenary Session of the 20th Central Committee of the Communist Party of China, it was announced that China would introduce the Private Economy Promotion Law, designed to create a more favorable environment for private enterprises. This law is expected to motivate private-sector involvement in major national initiatives and address systemic issues faced by private businesses.
Policies aimed at bolstering domestic demand, restoring market confidence, and supporting private-sector expansion have significantly energized economic activity in 2024.
Stimulating economic activity
Data from the SAMR indicates that by the end of September, the number of registered private enterprises in China surpassed 55 million, accounting for 92.3 percent of all businesses. The total number of market entities reached 188 million, marking a 3.9 percent year-on-year increase. Among these, enterprises grew by 6.1 percent, while individual businesses saw a 3.0 percent increase.
Furthermore, Li Chao, the deputy director of the Policy Research Office of the National Development and Reform Commission, highlighted that private investment in manufacturing surged by 11.4 percent during the first ten months of 2024, outpacing overall manufacturing investment growth by 2.1 percentage points. Additionally, foreign trade activities by private enterprises rose by 9.3 percent year on year.
Li emphasized that further measures are in the pipeline to enhance private sector growth, including supporting private companies in participating in infrastructure projects such as railways, energy, and water resources. There will also be initiatives to improve financing policies for private businesses and standardize enforcement practices to protect business rights and interests.
In addition to improving the business environment for domestic firms, China is taking substantial steps to support foreign enterprises as well. Key initiatives include revising the negative list for foreign investment, increasing market access, and reducing entry barriers. The publication of the Foreign Investment Law seeks to protect the legal rights of foreign investors and establish a clear regulatory framework.
Additional efforts, such as providing tax incentives for high-tech enterprises and loosening restrictions on foreign investments in manufacturing and services, have further enhanced opportunities for foreign businesses.
According to the Global Investment Trends Monitor released by the United Nations Conference on Trade and Development in January, global cross-border investment fell by 18 percent in 2023 when excluding transit investments by multinational corporations. Nonetheless, China has retained its status as a top destination for foreign investment. In the first quarter of 2024, the number of newly established foreign enterprises grew by 20.7 percent year on year, reaching 12,000, reflecting China's steadfast commitment to fostering a transparent, fair, and law-based business environment.
Mathilde Moreau contributed to this report for TROIB News
