China Mulls New Regulation To Improve Business Environment
China is working to enhance the business environment in the country through policy reforms that will result in suitable developments in the sector. The State Council, or the Chinese cabinet, is mulling the potential release of national regulation for this cause.
According to Xinhua, the State Council is planning to unveil a national regulation that will offer market guarantees for companies looking to invest in the country or set up a business. The move is considered one of Beijing's efforts to further opening up its economy to the world.
The regulation, which is expected to provide equal treatment for all market entities whether foreign or domestic, has already been viewed by a panel chaired by Premier Li Keqiang during Tuesday's State Council executive meeting.
If approved, the regulation will guarantee that businesses will remain autonomous and the property safety of market players will be upheld to ensure that all market entities can explore the massive Chinese market as long as these operators are in line with the country's policies.
Business experts have also started expressing optimism over the regulation even if it has yet to be officially approved and announced. A business law professor at the Renmin University of China, Liu Junhai, noted that the regulation will establish China as a country that offers a fair and transparent environment for entrepreneurs.
China has been promoting reforms in efforts to further open up the economy and provide a conducive business environment for both domestic and international brands. The Chinese government previously stated that it is hoping to boost consumption and encourage investments through necessary reforms.
Despite ongoing trade tensions with the United States, China's investment numbers from foreigners increased during the first eight months of the year. From the January to August period, foreign direct investments (FDIs) hiked by 6.9 percent year-on-year.
The increase in FDIs accounted for 604 billion yuan or $84.9 billion in foreign investments in the country. Industry experts said the numbers indicate that many foreign brands are still interested in doing business in China.
On Thursday, Chinese Foreign Ministry spokesman Geng Shuang reiterated that China will continue to improve the business environment in the country for foreign companies. On the other hand, he pointed out that the basis of business will still be grounded on mutual respect and mutual benefits.
Geng said Chinese policies for foreign companies will remain in line with the goal of protecting legitimate rights for these firms while ensuring that China's regulations are also followed accordingly.
China is the world's second-largest economy and for the past years, it has opened doors for many foreign investors to explore various markets in the country.