In December 2019, the Central Committee of the Communist Party of China and the State Council released the Opinions on Creating a Better Development Environment to Support the Reform and Development of Private Enterprises. The 2020 Work Report of Chongqing Municipal People’s Government also proposed to build a market-oriented and law-based international business environment. How to further optimize Chongqing's business environment, release the system's dividend, and boost market vitality?
During the business environment's comprehensive optimization, the city needs to act upon policies and guiding principles and provide better business coaching.
Prof. Huang Jun at the College of Economics and Management, Southwest University, who is also a member of the CPPCC Chongqing Municipal Committee, recommended that Chongqing continue promoting fair markets and increasing the confidence of private enterprises. During the business environment's comprehensive optimization, the city needs to act upon policies and guiding principles and provide better business coaching. For example, it can learn smart city building from Singapore and establishment of mayor’s data analysis offices from New York and London to set up sub-centers for policy data, enterprise data, and public opinion data. But it’s worth noting that Chongqing should know the real demand of private enterprises.
While offering good policies, systems, and measures, local governments should keep improving their capabilities to carry them out, establish a positive relationship with market entities, further perfect governance efficiency with high-quality and efficient government services, and safeguard legal business behaviors market entities.
Luo Chaoyou, a member of the CPPCC Chongqing Municipal Committee and Vice-Chairman of CPPCC Yongchuan District Committee, noted that according to a World Bank report, a sound business environment could increase the growth rates of investment and GDP by 0.3% and 0.36%, respectively. Creating a world-class business environment attracts global attention and people’s expectation.
He suggested that Chongqing establish special groups to coordinate resources at the municipal- and district-level, pooling strength to work towards the same goal. The city should also perfect relevant evaluation mechanisms, incorporating municipal departments, districts, and counties into the list receiving the business environment-related annual evaluation.
He Jianwei, a member of the CPPCC Chongqing Municipal Committee, a member of the Standing Committee of the CPC Tongliang District Committee, and Director of the United Front Work Department of CPC Tongliang District Committee, said Chongqing was still suffering problems concerning the business environment. For example, private enterprises cannot enjoy the same land/capital support policies as state-owned enterprises, which are supposed to be provided by the government, are offered by the market.
According to He, Chongqing has to further optimize the legal environment for private enterprises. It should heighten the public awareness of the rule of law, encourage people to observe the rule of law in thinking, improve the ability to fulfill duties following the law, and ensure and stimulate private enterprises' development.
Functional departments also have to strengthen the supervision on law implementation to protect private enterprises' legitimate rights and interests. They need to be prudent and minimize the impact on normal production and operation when using compulsory measures, such as seizure and freezing, against enterprises, which are in debt, temporarily have difficulties in fund flow, but still, boast a promising prospect. Additionally, these departments should crackdown on corporate-related crimes to protect enterprises' legitimate rights and interests.