Business environment optimization: An ongoing process

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Stories of High-Quality Development | Business environment optimization: An ongoing process

By Li Qiaochu (People's Daily Online) 11:00, April 01, 2025

A strong business environment serves as a key advantage for local economic growth and is essential for promoting high-quality development.

At a symposium on private enterprises held on Feb. 17, 2025, General Secretary Xi Jinping pointed out that we should resolutely dismantle obstacles that prevent enterprises from accessing production factors equally and competing in the market fairly, further open the competitive areas of infrastructure to various business entities in a fair manner, and continuously make solid efforts to address the difficulties faced by private enterprises in obtaining affordable financing. Authorities should work to clear overdue payments owed to private enterprises. Special initiatives will be launched to regulate enterprise-related law enforcement, with a focus on tackling arbitrary charges, fines, inspections, and seizures. We must protect the legitimate rights of private enterprises and entrepreneurs in accordance with the law. All relief policies should be fully implemented with precision and equal treatment for all businesses. We should further form a new type of cordial and clean relationship between government and business.

Every requirement directly addresses the most pressing concerns voiced by businesses. From the 2025 government work report to the first meetings of the year across many regions, optimizing the business environment has become a priority. By improving the experience for enterprises, reform measures can better translate into high-quality development outcomes.

"A sound business environment is like sunlight, water and air — essential for market entities to thrive," said Wu Xiaoyan, director-general of the Center for the Promotion of Doing Business Environment at the National Development and Reform Commission, during People's Daily's video program "Stories of High-Quality Development."

She said that improving the business environment is a crucial step in building a high-standard socialist market economy system, a key prerequisite for advancing high-standard opening up, and a necessary requirement for modernizing the national governance system and capacity.

What can be learned from Hangzhou's drive to optimize the business environment?

Since the beginning of 2025, Hangzhou's "Six Little Dragons," each with their unique strengths, have emerged and sparked a wave of technological innovation.

It is no coincidence that these six scientific and technological startups were all born in Hangzhou.

"Throughout our journey, we've deeply appreciated the city's sincere and tireless efforts to optimize the business environment. Relevant departments have assisted us in expanding our factory premises, helped us attract talent, provided housing policies for employees, and worked with us to resolve employee concerns, allowing us to focus entirely on R&D and become a leader in robotics technology," said Chu Yang, marketing manager of Unitree Robotics.

A city's greatest gesture of goodwill to businesses lies in its patience and inclusivity. While the "Six Little Dragons" differ in their fields and technical approaches, they all commend the city's highly supportive business environment.

"Enterprises and employees are in the best position to judge whether a business environment is good," said Li Ziqiang, director of the Overseas High-level Talents Innovation and Entrepreneurship Service Center in Hangzhou High-Tech Zone (Binjiang).

"In optimizing the business environment, we follow the principle of 'proactive when necessary, non-intrusive when not.' We've strived to build a comprehensive government service system featuring 'one window for all needs, one stop for all services, and unwavering support for enterprises throughout their lifecycle,'" he said.

The business environment serves as both a mirror and a measuring stick — reflecting a region's political and social ecosystem while gauging the efficiency and conduct of its local government.

"Optimizing the business environment requires aligning an efficient market with a well-functioning government. This involves constantly refining the systems underpinning the market economy, enhancing resource allocation efficiency, and addressing business pain points in enterprises' operation and development to achieve flexible and effective governance," Wu said.

She explained that Hangzhou's boom in standout startups stems from the local government's consistent support for innovation, which has created a "rainforest-style" ecosystem where new businesses can thrive.

Why does the rule of law create the best business environment?

Legal protection is a crucial factor in creating an optimal business environment. A sound legal system promotes the healthy operation of a market economy.

Intellectual property is the lifeblood of enterprise development. For Huaming Power Equipment Co., Ltd., a Shanghai-based tap-changer manufacturer, intellectual property is the key to opening up the market.