Entrepreneurial spirit requires healthy business environment

IN A VIDEO widely circulated via social media, the head of a company which owns a ski resort accused the local government in Yabuli of Mudanjiang, Heilongjiang province, for “bullying” and “deliberately making difficulties for” the resort, and appealed to the higher authorities to look into the matter to create a fair business environment. Thepaper.cn commented on Wednesday:

Usually, the relations between enterprises and local governments are depicted as harmonious, as the companies praise the government for efficient work, considerate services and powerful support. It is uncommon for a dispute such as this to be made public.

It is the common wish of local governments that the enterprises in their jurisdiction can develop well, because they create jobs, boost economic growth and generate tax revenue, all of which reflects well on the government.

The head of the company criticizing the local government in Yabuli surely knows the consequences of his action. But it seems he had tried every normal means to appeal to relevant departments about the “mistreatment” he felt his project had received. Although the Yabuli government has not responded to the man’s claims so far, the Heilongjiang provincial government responded immediately by announcing it will send an inspection team to handle the matter.

It is not difficult to investigate the authenticity of the claim that the ski resort has been mistreated, and not difficult to solve them if they are found to be true.

However, the Heilongjiang government should draw a lesson from the incident as it shows the normal appeal channel, which is an important component of the business environment, does not work, and in fact is even less effective than social media.

The incident also shows there may be a gap between what local governments promise to attract investment and what they do after the investors start their projects.

With the central government seeking to ensure a healthy business environment in order to promote the entrepreneurial spirit, local governments have the responsibility of safeguarding the legitimate rights and interests of entrepreneurs. The provincial government should make the investigation transparent so the truth of the matter is known.