In recent years, the “delegation of power, regulation, and service” reform has been deepening at all levels, continuously improving China’s business environment. Yet, when compared with enterprises’ actual experiences and international best practices, what gaps still remain in China’s business environment? What new measures will the relevant national authorities introduce next? And what additional institutional benefits will be unleashed? To address these questions, a reporter from Economic Reference News recently conducted an exclusive interview with a senior official from the Department of Regulations of the National Development and Reform Commission.

　　Question: According to the Economic Reference News, during the pandemic, numerous policies were introduced from the central to local levels. However, some enterprises have reported that cumbersome procedures and complicated processes have diminished their sense of gain. Regarding how to enable enterprises to better benefit from these policy dividends, what new measures will be taken in the context of the “delegation, regulation, and service” reform?

　　Answer: Since the outbreak of the epidemic, various relevant departments and local authorities have swiftly introduced numerous preferential policies and support measures. Businesses have reported that some of these preferential policies require the submission of multiple supporting documents during the application process, making the procedures rather cumbersome. Upon closer examination, one reason is that in some localities, the formulation and introduction of policies to support the resumption of work and production lacked sufficient research and deliberation; there was insufficient consultation with market entities, resulting in policies that were not sufficiently practical and operable. Another reason is that in certain localities, policy implementation has been inadequate or even distorted—beyond the clearly defined procedures and required documents, authorities have illegally demanded additional proof, leading to issues such as escalating requirements at each level.

　　Next, as the epidemic prevention and control situation continues to improve, while maintaining necessary prevention and control measures, we will accelerate the removal of unreasonable regulations that hinder the resumption of work and production. By deepening the “delegation, regulation, and service” reform, we will ensure that various policies aimed at helping and relieving enterprises are thoroughly implemented and effectively put into practice.

　　First, streamline and optimize administrative procedures. Accelerate the review and simplification of all procedures and approvals required for small and medium-sized enterprises to resume work and production, and thoroughly eliminate any items that lack legal basis. For approval and certification matters that are genuinely necessary, implement list-based management, standardize processing procedures, clearly define responsible departments, processing methods, application requirements, and completion deadlines. No approvals or requests for certificates shall be imposed beyond those listed on the official registry. We will resolutely prevent practices such as layer-by-layer escalation of requirements, mutual preconditions for approvals, cyclical certification processes, and the arbitrary introduction or disguised imposition of administrative licenses under the pretext of epidemic prevention and control.

　　Second, we will accelerate the implementation of “one-stop online services.” We will identify a batch of government service items closely related to enterprise resumption of work and production as well as people’s daily lives, and take the lead in fully transitioning these services to online processing. Any approval or filing procedures that can be handled online shall not require applicants to visit the service counter in person. We will speed up efforts to share government data urgently needed by local authorities and departments in epidemic prevention and control as well as in resuming work and production. We will actively promote the deep integration of new digital technologies with government services, analyze and understand the differentiated needs of residents in various regions and enterprises of different types, and promptly provide more targeted services. We will make good use of government service websites at all levels, mobile apps, WeChat, and other information platforms, continuously optimize special sections dedicated to supporting enterprise resumption of work and production, publicly release preferential policies and tax relief measures available to enterprises during the epidemic prevention and control period, and provide online answers to difficult questions related to resuming work and production.

　　Third, effectively reduce the burden on enterprises. We will streamline and abolish temporary control measures that are no longer appropriate, as well as unreasonable requirements for certifications and fees. We will conduct a comprehensive review of all types of illegal charges imposed during the epidemic prevention and control period, and strictly prohibit governments at all levels from collecting deposits from enterprises as a condition for resuming work and production. Localities are encouraged to explore and implement initiatives such as “Enterprise Butlers” and “Enterprise Service Packages,” proactively providing front-line services to assist enterprises in handling resumption-of-work and production procedures, and ensuring adequate supply of key factors including labor, raw materials, and funding. We will also expand channels for consultation and complaint regarding resumption of work and production by simultaneously launching platforms for collecting grievances through online special columns, hotlines, mobile apps, and government service halls, thereby ensuring that “every question receives a response, every request is addressed, and every difficulty is helped.”

　　Question: According to the Economic Reference News, the “Regulations on Optimizing the Business Environment” officially came into effect on January 1, 2020. As a regulatory document, how will it help improve China’s domestic business environment?

　　Answer: The Regulations consist of 7 chapters and 72 articles, featuring comprehensive provisions and detailed content. They clearly define the reform directions and objectives for optimizing the business environment across various sectors, and establish institutional norms covering all areas currently involved in efforts to improve the business environment, thereby providing crucial legal safeguards for investment and entrepreneurship by various market entities.

　　First, the focus is on establishing fundamental norms and promoting coordinated and efficient reform. The Regulations cover five key areas—protection of market entities, market environment, government services, regulatory enforcement, and rule-of-law safeguards—encompassing all aspects of business environment development.

　　Second, the regulations focus on the enterprise lifecycle and address key concerns of businesses. Centered around high-frequency matters in the business operations of SMEs—such as starting a business, obtaining construction permits, securing electricity supply, registering property, accessing credit, protecting small and medium-sized investors, paying taxes, engaging in cross-border trade, handling bankruptcy proceedings, participating in bidding and tendering, and government procurement—the regulations provide specific provisions aimed at simplifying procedures and reducing processing times.

　　Third, we will focus on standardizing government behavior to further unleash market vitality. The Regulations adhere to the reform direction of the socialist market economy, calling for the minimization of direct government intervention in market resource allocation and the effective reduction of institutional transaction costs.

　　Fourth, the focus is on encouraging and supporting innovation and clearly defining a tolerance-for-error mechanism for reform. The Regulations strongly encourage and support various regions and departments in actively exploring original and differentiated specific measures to optimize the business environment within the framework of the rule of law.

　　Fifth, we will focus on promoting fair regulation and safeguarding equitable market competition. The Regulations provide comprehensive protection for market entities, ensuring that all types of market entities can equally access various production factors and public service resources in accordance with the law.

　　Sixth, we must focus on making government affairs open and transparent to bolster confidence and stabilize expectations. The Regulations require government departments to genuinely transform their work styles, providing market entities with standardized, convenient, and efficient government services, while also enhancing the transparency and stability of policies.

　　In short, the promulgation of the Regulations represents an important milestone in China’s ongoing efforts to optimize the business environment. It sets a new starting point and raises new expectations for our next steps. As the Regulations are implemented and begin to yield tangible results, a stable, fair, transparent, and predictable business environment will accelerate its formation, playing a crucial supporting role in helping China maintain its long-term economic momentum and achieve high-quality development.

　　Question: According to the Economic Reference News, in recent years, China’s ranking in the World Bank’s Doing Business assessment has risen steadily year after year, jumping to 31st globally in 2019—a further improvement of 15 places over the previous year’s substantial gain. Overall, what is the current state of China’s business environment?

　　Answer: The business environment is the fertile ground for enterprises to survive and thrive. In recent years, various regions and departments have earnestly implemented the Party Central Committee and the State Council’s decisions and arrangements on deepening the “delegation, regulation, and service” reform and optimizing the business environment. Taking proactive measures and exploring innovative approaches, they have generated a large number of creative practices and vivid experiences aimed at improving the business environment, continuously enhancing the sense of gain and satisfaction among businesses and the public. This is mainly reflected in four key areas: a more comprehensive institutional framework, deeper decentralization and empowerment, fairer regulatory enforcement, and higher-quality government services.

　　Some data provide even more compelling evidence for these four aspects: According to incomplete statistics, since 2017, the Party Central Committee, the State Council, and various ministries and commissions have issued over 200 policy documents aimed at optimizing the business environment. All regions and departments have carried out thorough cleanups of bizarre certification requirements and cumbersome procedures, abolishing more than 13,000 such requirements. The National Credit Information Sharing Platform has now connected 44 government departments as well as all provinces, autonomous regions, and municipalities, aggregating over 40 billion pieces of credit information. As of now, the processing time for establishing a business, applying for water and electricity connections, and registering real estate has been reduced by more than 50%.

　　Overall, as various efforts to optimize the business environment continue to advance steadily, market vitality has significantly strengthened. In 2019, the number of newly registered market entities nationwide reached 21.79 million, with an average of 20,000 new enterprises established each day. The actual utilization of foreign investment totaled 941.5 billion U.S. dollars, representing a year-on-year increase of 5.8%.

　　Question: According to the Economic Reference News: More specifically, indicators such as starting a business and obtaining construction permits in China have improved rapidly. However, there still seems to be a gap compared to developed countries, and some enterprises appear to feel that their experiences differ from the government’s promises. What’s your take on this discrepancy?

　　Answer: In recent years, China’s global ranking in terms of business environment has continued to improve significantly, with notable progress in relevant indicators. For two consecutive years, China has been among the top ten economies worldwide that have made the greatest improvements in optimizing their business environment. It can be said that, thanks to the unremitting efforts of all parties involved, the gap between China’s various indicators and those of developed economies is gradually narrowing, and in some areas, China has even managed to surpass them.

　　Of course, some enterprises and members of the public have also reported that, in the process of handling government service matters, there is still a certain gap between their actual experience and the promises made by local governments. The main reasons for this gap are as follows:

　　First, there are gaps in policy implementation. The survey found that in some areas, the publicity for new policies and practices aimed at optimizing the business environment is insufficient. As a result, businesses and the public often have to first visit the government service hall for consultation, then gather the necessary documents, and finally return to the hall again to submit their applications—turning what was supposed to be a “single visit” into “multiple visits.”

　　Second, there are gaps in information sharing. Some localities have reported that, in the process of handling approval procedures, they need to use dozens of business systems administered by different departments. In some cases, data cannot be shared or accessed across these systems, leaving the public still having to visit multiple service windows or submit the same documents repeatedly.

　　Third, there are gaps in window services. In some localities, service and approval matters in government service halls are not centralized; window layouts are unreasonable; guidance materials are unclear; and window staff cannot promptly and accurately answer questions and address concerns raised by businesses and the public.

　　To better address the issues mentioned above, we are working closely with relevant departments to promptly study and formulate specific measures aimed at further enhancing the efficiency of government services. Specifically, we will intensify efforts to publicize and interpret regulations and policies; accelerate the integration and sharing of government service information; and continuously improve both online and offline service offerings.

　　Q: According to the Economic Reference News: The National Development and Reform Commission’s evaluation system for the business environment differs from the World Bank’s system. What were the main considerations behind the design of this indicator system? And what is the current status of its implementation?

　　Answer: Since 2018, the National Development and Reform Commission has been guided by the satisfaction of market entities and the public, taking the deepening of the “delegation, regulation, and service” reform as a key driver. Adhering to the principles of Chinese characteristics and international comparability, it has established a business environment evaluation system and mechanism that are well-suited to China’s national conditions. Building on and enriching internationally accepted evaluation indicators, this system incorporates the contemporary demands of China’s reform and local features. While drawing on the World Bank’s 12 indicators, it has also removed content that clearly does not align with China’s national conditions and added evaluation indicators that reflect China’s unique realities, resulting in a total of 18 first-level indicators. The Chinese business environment evaluation indicator system adopts a dual perspective—covering the entire lifecycle of enterprise development and high-quality urban development—thus more comprehensively addressing the needs and concerns throughout the entire enterprise development process, more fully reflecting the fundamental aspects and level of high-quality urban development, and more accurately demonstrating the strengths and weaknesses of a region’s business environment.

　　In 2018, a pilot assessment of the business environment was conducted in 22 cities across the eastern, central, western, and northeastern regions. The first batch of pilot assessments was carried out in 12 cities, including Beijing, Shanghai, Xiamen, and Shenzhen. Based on feedback from these initial cities, the indicators were refined and adjusted. Subsequently, a second batch of pilot assessments was conducted in 10 cities, including Tianjin, Chongqing, and Qingdao, and the evaluation indicators were further verified and fine-tuned. In 2019, as directed by the State Council, another round of pilot assessments was launched in 41 cities—including municipalities directly under the central government, cities designated under separate planning, provincial capital cities, and selected prefectural-level and county-level cities—and a pilot assessment was also conducted in 21 cities in the northeastern region. In 2020, the business environment assessment will be gradually rolled out to more cities at or above the prefectural level nationwide.

　　The Regulations clearly stipulate that the state shall establish and improve an business environment evaluation system oriented toward the satisfaction of market entities and the general public, thereby leveraging the evaluation system to guide and urge continuous improvement of the business environment. We have observed that the implementation of domestic business environment evaluations has further strengthened local governments’ sense of mission to serve the people. Localities are placing greater emphasis on optimizing the business environment, and a working pattern characterized by coordinated efforts across all levels, interdepartmental collaboration, active social participation, and joint governance is accelerating its formation. As a result, more policies and measures that benefit businesses and make life easier for the public are being introduced and put into practice at an ever-faster pace, leading to ongoing improvements in the business environment nationwide.

　　Next, we will promptly summarize, sort through, and refine the best practices for optimizing the business environment, guiding regions and departments to benchmark against leading examples and take proactive measures. Within the framework of the rule of law, we will actively explore original and differentiated concrete measures to optimize the business environment, continuously contributing innovative approaches and vivid experiences. This will help accumulate valuable experience for promoting nationwide reforms and provide a reference for other regions to learn from and adopt.