Ma Xiaobai, Enterprise Research Institute, DRC

Research report No.49, 2017 (Total 5124) 2017-04-27

Abstract: Business environment has an important impact on an economy including its business performance, foreign investment and economic growth. The annual “Doing Business Report” published by the World Bank provides a compelling benchmark and comparable objective data to illustrate the business environment of each country and has received high attention worldwide. According to the World Bank's 2017 report, China ranked 78th among the 190 economies. The report pointed out that there are some outstanding problems in China’s business environment. For instance, it is difficult to get a construction permit; some issues relating to taxation remain to be solved; the process of establishing an enterprise needs to be streamlined; the protection of small and medium-sized investors is insufficient; electricity supply is inadequate; and difficulties still exist in conducting cross-border trade. Efforts need to be made to address the problems pointed out in the World Bank's report so as to improve the business environment for the promotion of “mass entrepreneurship and innovation” and to enhance China’s ranking to better attract global investment. Relevant policy options are: 1. Beijing and Shanghai could be the first to take reform measures. 2. We need to take into account long- and short–term needs in order to speed up the improvement of business environment. 3. We need to press ahead with advanced experience to accelerate administrative system reform. 4. We need to establish a regional business environment evaluation system in light of China's national conditions.

Keywords: business environment, international ranking, World Bank