ZHIKUYAOLAN
Editor's note
A good business environment, like sunshine, water and air, is indispensable for business entities. Continuously optimizing the business environment can stimulate the entrepreneurship and innovation of market entities to the greatest extent, and is conducive to enhancing the vitality of micro entities. Around the world, economies are facing both challenges and opportunities to optimize their business environment. For China, creating a first-class business environment is an important part of the government's provision of public services, and it is also an important foundation and key link to achieve high-quality development. From a practical point of view, China has indeed shown strong attraction and vitality in improving the foreign investment environment and enhancing its international competitiveness.
The global business environment continues to improve
Reading tip: According to the World Bank Group's first-ever Doing Business Maturity Report, global economies outperform the provision of essential public services in developing regulations that improve the business environment. According to the report's scoring criteria, economies scored an average of 65.5 on the quality of their regulatory frameworks. However, the average score of these economies in public services is only 49.7, which is significantly lower than it should be. The report also notes that richer economies generally have a more mature business environment, but not only rich economies. According to the Survey Report on China's Foreign Business Environment for the Second Quarter of 2024 released by the China Council for the Promotion of International Trade, foreign companies are highly satisfied with China's business environment, with more than ninety percent of the surveyed companies expressing satisfaction with multiple relevant indicators. The survey covered more than 400 foreign-funded enterprises, of which 71% were small and micro enterprises. According to the report, nearly half of companies expect profit margins in China to improve in the next five years, indicating optimism about the long-term prospects of the Chinese market. In addition, 15% of enterprises plan to increase their investment in China this year, and the proportion of enterprises with a capital increase of "more than 20%" has also increased. The 2024 World Competitiveness Annual Report released by the Lausanne School of Management in Switzerland also shows that China's competitiveness ranking among global economies has jumped to 14th, up 7 places from last year. There are four indicators in the annual report, namely business effectiveness, government effectiveness, infrastructure and economic performance. Among them, the improvement of government efficiency reflects the positive actions of the Chinese government in promoting economic restructuring, optimizing the business environment and strengthening international cooperation.
World Bank Group:
Affluence is not the only factor in the quality of the business environment
On October 3, the World Bank Group's latest Doing Business Maturity Report (the "Report") was released, which is the first report since the launch of the new Doing Business Maturity Indicator System. Economies are doing a better job of developing regulations that optimize the business environment than they do to provide the public services needed to facilitate real improvements.
This year's report assesses the ease of doing business in 50 economies, using vast data (1,200 indicators per economy) to identify specific areas for improvement and drive reforms. Over the next three years, the report will gradually expand its coverage to include some 180 economies by 2026, providing a comprehensive global comparative analysis.
On a scale of 0 to 100, the report notes that economies score an average of 65.5 for the quality of their regulatory frameworks, but only half of their average score for public services of 49.7. The gap between the two exists in all regional economies, although it is smallest among high-income economies and largest in sub-Saharan South Africa and the Middle East and North Africa.
Norman · Loizza, director of the World Bank's indicators team that leads the Doing Business Maturity study, said richer economies generally have a more mature business environment, but not only rich economies. The report's analysis shows that low- and middle-income economies can also create a business-friendly environment.
CCPIT:
In the second quarter, more than ninety percent of foreign-funded enterprises expressed satisfaction with China's business environment
According to the "Survey Report on China's Foreign Business Environment for the Second Quarter of 2024" (hereinafter referred to as the "Report") released by the China Council for the Promotion of International Trade, in the second quarter of this year, foreign-funded enterprises were generally satisfied with China's business environment. Among the 10 indicators surveyed, more than ninety percent of the surveyed foreign-funded enterprises rated seven indicators as "satisfactory" or above: "municipal public infrastructure installation", "acquisition of business premises", "business closure procedures", "market access", "cross-border trade", "tax payment" and "settlement of commercial disputes".
It is reported that the survey interviewed more than 400 foreign-funded enterprises, of which 43% are from developed countries or regions such as the United States and Europe, 71% of the enterprises are small and micro enterprises, and 45% of the enterprises are from the traditional manufacturing industry. These data show that both manufacturing enterprises and small and micro enterprises from developed countries have given high praise to China's business environment.
According to the report, nearly half of the foreign companies surveyed expect their profit margins to increase in China in the next five years. This shows that foreign companies are optimistic about the long-term prospects of operating in China. In addition, 15% of the surveyed foreign-funded enterprises said that they would increase their capital in China this year, of which the respondents said that the increase in capital was "greater than 20%", an increase of 6.73 percentage points from the previous month. This also shows that despite the uncertainty of the international situation, the confidence of foreign enterprises to expand their investment in China is increasing.
In terms of investment confidence in the future, more than 40% of the foreign companies surveyed believe that the attractiveness of the Chinese market is rising. In particular, U.S. companies are optimistic about the prospects of the Chinese market this year, and more than 40% of United States companies believe that the attractiveness of the Chinese market has increased.
A spokesperson for the China Council for the Promotion of International Trade said that the report shows that despite the changing international situation, China is still a hot spot for global investors. The vast number of foreign-funded enterprises continue to be optimistic about the Chinese market, and their confidence in expanding investment in China has been increasing. This positive signal not only reflects the trust and expectations of foreign enterprises in China, but also provides strong support for China to attract foreign investment and promote economic development.
Lausanne School of Management, Switzerland:
The Chinese government continues to optimize the business environment
The "World Competitiveness Annual Report" (hereinafter referred to as the "Annual Report") released by the Lausanne School of Management in Switzerland has once again become the focus of market attention, which not only shows the performance of various economies on the global stage, but also a comprehensive review of the economic strength and development potential of each country. China's performance in this annual report is particularly eye-catching, with its ranking jumping to 14th out of 67 economies in the world, up seven places from last year, which undoubtedly adds a new footnote to China's rapid economic development.
The four major indicators in the annual report, namely business effectiveness, government effectiveness, infrastructure and economic performance, provide a multi-dimensional perspective on the competitiveness of a country or region. According to the annual report, China's performance in these indicators is undoubtedly the key to improving its competitiveness. In terms of enterprise efficiency, Chinese enterprises are enhancing their international competitiveness through continuous technological innovation and market expansion. The improvement of government efficiency is reflected in the positive actions of the Chinese government in promoting economic restructuring, optimizing the business environment and strengthening international cooperation. The rapid development of infrastructure construction has provided a solid material foundation for the sustained growth of China's economy. In terms of economic performance, China's steady growth and expansion of foreign trade in recent years have demonstrated its important position in the global economy.
China's business environment continues to upgrade
Reading tip: Promoting the optimization and upgrading of the business environment can make the majority of business entities flourish. The University of International Business and Economics and Heilongjiang University recently jointly released the Assessment Report on the Business Environment of China's Digital Economy (2023), which refines the advanced experience of optimizing the business environment of the digital economy in various regions and discusses the importance of the rule of law guarantee system in the development of the digital economy. The report systematically assesses the business environment of the digital economy in 36 major cities in mainland China. The report emphasizes that the rule of law plays a leading and normative role in the construction of the business environment, and promoting the rule of law in the digital business environment is the key to realizing the modernization of the modern market system and national governance capacity. According to the Annual Report on International Commercial Arbitration in China (2023-2024) released by the China International Economic and Trade Arbitration Commission, arbitration, as an important means of resolving international economic and trade disputes, is becoming a means for countries to optimize the business environment and enhance the soft power of the rule of law. In 2023, CIETAC accepted a record 5,237 cases, increasing the degree of internationalization of cases and enhancing international credibility, promoting the trust of global commercial entities in Chinese arbitration. According to the 2023 Research Report on the Business Environment of Chinese Provinces released by the Wuhan University-Peking University joint team, Shanghai's business environment ranks first in the country, followed by Beijing, followed by Zhejiang, Guangdong, Sichuan and other provinces and cities. The report emphasizes that optimizing the business environment is a systematic project, which requires all localities to find out their strengths and weaknesses in combination with their own conditions, learn from advanced experience, and continue to optimize. The report suggests that regions with high business environment scores but unbalanced "sub-environment" should pay attention to their shortcomings, while regions with low rankings but balanced "sub-environment" should focus on improving their advantages to promote high-quality development.
University of International Business and Economics and Heilongjiang University:
The rule of law plays a leading and normative role in the construction of a business environment
The University of International Business and Economics and Heilongjiang University recently jointly released the "Assessment Report on the Business Environment of China's Digital Economy (2023)" (hereinafter referred to as the "Report"), which focuses on the digital economy, the "new engine" of economic development, and systematically assesses the development of the business environment of the digital economy in 36 major cities in mainland China. The report also extracts the advanced experience of optimizing the business environment of the digital economy in various places, deeply analyzes and accelerates the construction of the legal guarantee system for the business environment of the digital economy, and helps create a market-oriented, law-based and international first-class business environment.
The report points out that the rule of law plays a leading, promoting, regulating and guaranteeing role in the construction of a business environment, and the rule of law is inseparable from creating a high-quality digital business environment. Bringing the construction of the digital business environment into the track of rule of law is not only an overall requirement for the healthy development of the digital economy, but also a path choice to build a unified, open, competitive and orderly modern market system and realize the modernization of the national governance system and governance capacity. The business environment involves the whole process and various fields of the enterprise life cycle, such as the access, production, operation and exit of business entities, covering the market environment, government services, regulatory law enforcement, and legal guarantees. The business environment is an institutional system formed by the interaction between the government and business entities, and "the rule of law is the best business environment" is an inevitable requirement for comprehensive rule of law, and it is also an important indicator for the creation and evaluation of a rule of law government. Optimizing the business environment requires the steady improvement of the level of rule of law government construction, and it is necessary to further give full play to the government's service functions, and reform and improve the pain points, difficulties, and blocking points reflected by business entities.
China International Economic and Trade Arbitration Commission:
Arbitration is becoming an important tool to optimize the business environment
The China International Economic and Trade Arbitration Commission (CIETAC) has released the Annual Report on China International Commercial Arbitration (2023-2024) (hereinafter referred to as the "Report") and the Selected Cases of Extraterritorial Recognition and Enforcement of CIETAC Arbitral Awards.
According to the data, in 2023, CIETAC will accept 5,237 cases, a year-on-year increase of 28.17%, the amount in dispute will be 151.023 billion yuan, a year-on-year increase of 19.01%, and the average disputed amount of cases will be 28.8377 million yuan, with both the number of cases and the amount of the subject matter reaching a record high. Among them, there were 645 foreign-related cases, with a disputed amount of 52.765 billion yuan, and an average disputed amount of 81.8055 million yuan in foreign-related cases. At the same time, the international characteristics of the cases have become more prominent, with cases involving 88 countries and regions during the year, and the cumulative number of countries covered has reached 165, further expanding the scope of services for global commercial entities and further enhancing the international credibility of institutions.
The Report points out that Chinese courts continue to uphold a friendly attitude in support of arbitration and the spirit of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which is conducive to the enforcement of awards, respect the arbitration agreements and arbitration rules agreed upon by the parties, strictly grasp the provisions of public policy, and make increasingly detailed explanations and analyses in civil rulings, presenting a high level of foreign-related judicial adjudication as a whole, and creating a fair and favorable judicial environment for arbitration.
Wang Chengjie, Deputy Director and Secretary-General of CIETAC, said that arbitration, as an internationally accepted method of resolving economic, trade and investment disputes, has become an important means for countries to optimize the business environment and enhance the soft power of the rule of law. At a time when countries around the world are paying more attention to the development of arbitration and international competition is becoming more and more fierce, the business data of Chinese arbitration institutions represented by CIETAC has increased significantly, and the degree of internationalization of cases has continued to increase.
Wuhan University-Peking University Joint Team:
Optimizing the business environment should be based on its own situation
A few days ago, the Wuhan University-Peking University joint team released the "Research Report on the Business Environment of China's Provinces 2023" (hereinafter referred to as the "Report"). The report first introduces the quantitative assessment of the business environment of 31 provinces (autonomous regions and municipalities) in Chinese mainland from 2017 to 2021, including indicators, data and methods, as well as the analysis of the overall evaluation results. At the same time, on this basis, the business environment overview, advantages and shortcomings are analyzed, and optimization suggestions and future prospects are put forward.
According to the report, Shanghai's business environment ranks first in the country, followed by Beijing. Among the seven grades, the top of the country also includes: Zhejiang, Guangdong, Sichuan, Shandong, Jiangsu, Anhui, Chongqing, Guizhou, and Hubei. Among them, 13 provinces (autonomous regions and municipalities) have a serious inversion of the "overall business environment" and "sub-environmental equilibrium". Moreover, the level of economic development is not simply the same as the level of business environment, and the ranking of business environment in 17 provinces (autonomous regions and municipalities) does not match the ranking of per capita GDP.
The report emphasizes that optimizing the business environment is a systematic project, which requires all provinces to find out their strengths and weaknesses in combination with their own conditions, learn from advanced experience, and continue to optimize. At the same time, the report also puts forward some common problems and shortcomings, such as data timeliness and indicator measurement methods.
The report suggests that regions with high business environment scores but lagging behind in the "balance of sub-environment" should strive to make up for their shortcomings while maintaining their overall advantages; Regions with a low score in the business environment but with the highest ranking in the "balance of sub-environment" should focus on strengthening the "sub-environment" to improve the overall score.
China Economic Times reporter Sun Zhao compiled it based on public information
Chief Producer丨Wang Hui and Che Haigang
Producer丨Li Piguang, Chen Bo, Wang Yu
Editor-in-Chief丨Mao Jinghui Editor丨Gu Yun