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Evaluations on Urban Business Environment in China (No.224, 2018)


By Li Zhijun, Zhang Shiguo, Gao Taishan, Shan Shan & Zhou Pinglu, Research Team on “Evaluations on Urban Business Environment in China”, the Institute of Economics, Management World Magazine

Research Report, No.224, 2018 (Total 5499) 2018-12-25

Abstract: Based on the reality in China, this paper puts forward the principles, indicators and methods for evaluating urban business environment, gives comments on the business environment of four municipalities, five cities under separate state planning, 27 provincial capitals and 254 prefectural-level cities and raises policy options for further improving the urban business environment in China. The evaluation results show that various local governments have, in the course of reform, effectively optimized the business environment for enterprises, greatly improved the efficiency of administrative services and steadily enhanced the level of public services by formulating a batch of negative lists, delegating power, streamlining administration and optimizing government regulation and services. However, domestic urban market environment has gradually become widely different and the environment for innovation between regions remains imbalanced as China advances the transformation of economic development modes. In order to further optimize the urban business environment, the following policy options are therefore proposed. First, China needs to further implement the above-mentioned reform measures, accelerate the transformation of government functions and improve the efficiency of administrative services. Second, it needs to make steady efforts for a more open and fairer domestic market, widen the opening up and strive to boost domestic consumer market. Third, it needs to optimize the financing environment, help domestic enterprises overcome the difficulties in financing and innovate the financing guarantee mechanism. Fourth, it needs to improve the public service facilities proactively, improve the efficiency and level of public services and promote the equalization of public services. Last but not least, it needs to push ahead with the reform for a more innovation-friendly environment, improve the proportion of market-oriented recruitment of talented personnel and solve the problems of enterprises in recruiting new workers.

Key words: business environment, evaluations, reforms designed to delegate power, streamline administration and optimize government regulation and services