Report: Business climate still inclement

Chinese enterprises are less than enthusiastic about the current business climate and want measures that can create a more conducive market environment, a report released on Monday said.

The report, prepared by the School of Management at the Zhejiang University and the Beijing-based Horizon Institute of Global Development Power, said most of the enterprises in China, irrespective of their size or scale, are unhappy with the government's current role in the market.

The study, prepared after extensive interviews and questionnaires with top officials at the deputy chief level or above, with decision-making powers from more than 300 enterprises across the country, sought to analyze the current condition of various enterprises in China and to chart strategies for their sustainable development in the fast-changing market environment.

"Cultivating a healthy market environment will help promote the enterprises' development. The best way to do that is through less government intervention," said Wu Xiaobo, dean of the School of Management at Zhejiang University.

The report is also known as a "health index" for enterprises in China. Businesses were evaluated on three major aspects vis-a-vis entrepreneurial spirit, business practices and business environment.

The report showed that enterprises in China have only the minimum qualifications required for healthy development and still have a long way to go.

China's private enterprises have long been applauded for their pioneering spirit, but their performance in compliance and social responsibilities are not good enough. Lack of self-discipline is the main reason for Chinese private enterprises' less than healthy condition, the report said.

Although the State-owned companies are doing well in compliance matters, they are still weak in competitive power. The dependence on monopoly resources and capital advantages make the State-owned companies weak in innovation and pioneering spirit, it said.

"China has seen high-speed economic development over the past decades. For enterprises, maintaining sustainable development in a dynamic market environment has long been an important issue," said Chen Ling, executive director of the Academy of Global Zhejiang Entrepreneurs at Zhejiang University.

"Enterprises should pay more attention to healthy business growth and not merely focus on the increasing profits and expanding scale," Chen said.

This year, multinational companies were also included in the research. According to the report, multinational companies ranked high in terms of corporate spirit and behavior, and often acted as the benchmark for the market.

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