City looks to optimize business environment
SHANGHAI yesterday unveiled its 7th action plan to optimize the city’s business environment, aiming to further attract investment and boost trade through a focus on reducing regulations, enhancing services, and fostering innovation.
The revised plan streamlines administrative procedures, cutting the number of entries from 208 to 150 and simplifying the process of obtaining business permits and licenses.
The “user-centric” approach emphasizes clarity and accessibility for businesses and the public.
Foreign-invested enterprises will receive increased support, from multilingual support to streamlined work permit processes, according to the plan.
The plan also strengthens intellectual property protection and aims to create a more transparent and efficient regulatory system to ensure a level playing field for all businesses.
Beyond streamlining processes, the plan acknowledges the need for deeper reforms.
Shanghai has aced its 2023 action plan, completing all 208 tasks. For example, it launched a 24/7 online company registration platform. The platform, launched in May, covers all types of business needs and processed over 360,000 registrations, changes, and cancellations last year.
The city also provided over 110 billion yuan (US$15.3 billion) in tax cuts, refunds, and deferrals last year.
Additionally, nine one-stop digital platforms were set up to resolve foreign-related business disputes in 2023.
Recognizing that current rankings are not the ultimate goal, it emphasizes the importance of creating a “whole-of-society” business environment.
This involves collaboration across all sectors, from government and businesses to the general public, to cultivate an environment truly conducive to growth.
Wang Sizheng, president of the Shanghai Society of Macroeconomics, believes that the next frontier in business environment optimization lies in market access.
He said that the World Bank’s previous business environment standards focused on business establishment, which China has already addressed.
The new standards, however, place greater emphasis on market access, which means ensuring that foreign and private enterprises are treated on par with state-owned enterprises. This includes things like land prices and bank loan interest rates.
Wang also highlighted the importance of cultural and social factors. A supportive and open-minded environment, fostered by a thriving cultural scene and positive attitudes towards entrepreneurship, is crucial for long-term success.
(Shanghai Daily)