Supportive policies propel business vitality

BEIJING — China's business sector has demonstrated renewed vitality and momentum since the start of the year, driven by a series of strengthened government policies designed to foster a more supportive environment.

In the first quarter, the number of newly registered private and foreign-funded enterprises went up 7.1 percent and 4.3 percent year-on-year, respectively. Private investment, which has declined over the past year, rebounded with a 0.4 percent increase. The Small and Medium Enterprises Development Index rose to 89.5, the highest level since 2020.

Liu Min, an official of the National Development and Reform Commission, said a raft of policy measures spanning finance, investment, trade, talent and innovation have been introduced at both central and local levels to cultivate a business environment that supports and energizes the private economy.

For Li Yukun, who works at a real estate development and construction firm in Fuzhou, East China's Fujian province, the changes have been tangible. "Applying for construction permits used to involve separate approvals and multiple trips. Now, it's done with just a few clicks online," he said. His permits were issued in just one day, a sharp contrast to the lengthy process of the past.

Fuzhou is spearheading a campaign to streamline and improve the efficiency of administrative services.

"We've launched 32 service packages for enterprises and 16 for individuals to ensure that procedures can be completed either through a one-stop window for offline applications or via a single integrated platform online," said Xie Yibo, an official at a local administrative service center.

This approach reflects a broader nationwide trend of enhancing government services. Authorities at all levels are embracing digital reforms and restructuring administrative processes to enhance service delivery, ranging from corporate information modification and credit rehabilitation to restaurant licensing.

Public services are becoming more efficient, responsive and better aligned with the evolving needs of both enterprises and citizens.

Optimizing public services serves as a powerful lever for enhancing the overall business climate, said Wei Qijia, a researcher at the State Information Center, adding that government services should be efficient and precisely target key concerns of market players.

Across the country, authorities have actively engaged with businesses, listening to their concerns and responding with practical measures to address their needs.

Sui Xiaodong, a feed producer in Northwest China's Gansu province, secured vital financing with the support of the local government. Meanwhile, in county-level city Beiliu of South China's Guangxi Zhuang autonomous region, proactive efforts by local officials in recruitment, infrastructure development, and project implementation have facilitated the growth of the private economy. Currently, the city hosts 16,000 private enterprises, accounting for more than 85.5 percent of local businesses.

Experts believe that at a time of global economic uncertainty, such practical support is crucial for reducing the burden on businesses, restoring market confidence and sustaining economic recovery.

Since the beginning of the year, Chinese authorities have introduced a host of policy measures to cultivate a fairer, more transparent and stable business environment.

On Feb 5, the first working day after the 2025 Chinese New Year, Shanghai unveiled a new action plan to further optimize its business environment. This marks the eighth consecutive year that the city has made improving the business climate a top post-holiday priority.

In March, the State Council released guidelines to establish a long-term mechanism for business-related fees. As the first national-level initiative of its kind, the guidelines promise full-cycle oversight to prevent arbitrary charges on enterprises.

Standardizing business-related fees not only alleviates financial burdens, but also enhances legal certainty, which is essential for stable market expectations, said Liao Chengtao, chairman and president of Silian Chuangye Group, a rubber and plastic industry chain circulation services provider.

On April 24, China published the 2025 edition of the market access negative list. The number of restrictive items was reduced to 106, down from 117 in the previous 2022 version and also a 30 percent drop compared to the original 151 listed in the first 2018 version.

Guo Liyan from the Economic Research Institute of the NDRC said the list's "entry-unless-prohibited" model has streamlined access and reduced administrative interference, helping reshape the role of the government in market regulation.

In a landmark legislative development, China's national lawmakers voted to adopt the country's first fundamental law dedicated to promoting the private sector at the end of April. The Private Economy Promotion Law, passed at a session of the Standing Committee of the National People's Congress, will take effect on May 20.

"As more market players are taking bold steps to explore emerging sectors and future industries for development, they are injecting fresh energy into the economy," said Su Jian, an economist at Peking University. "Authorities must continue to support this dynamism by fostering a more enabling business environment."

Xinhua