China’s business environment reforms are beginning to show tangible results, with private and foreign enterprises gaining new confidence. Since the start of the year, government initiatives have focused on practical changes to reduce costs and enhance services. As a result, newly registered private firms rose by 7.1 percent in the first quarter. Foreign-funded enterprises also grew by 4.3 percent, while private investment reversed its decline and increased slightly. The Small and Medium Enterprises Development Index climbed to 89.5, its highest level since 2020.
Officials at the National Development and Reform Commission (NDRC) credit this upswing to policies across finance, innovation, and talent development. These measures, rolled out by both central and local governments, aim to build a more efficient and fair business climate. In many regions, digital transformation has already reshaped the way businesses interact with public offices. For instance, construction companies in Fujian can now receive permits within one day, eliminating previous bottlenecks.
Fuzhou has emerged as a model city for this transition. Local officials launched dozens of service packages tailored for both enterprises and citizens. They designed these to be accessible either in person or through a unified online platform. Across the country, cities are restructuring services like restaurant licensing, credit rehabilitation, and corporate registration. These upgrades, though administrative in nature, significantly reduce friction for growing companies.
Business environment reforms also include more targeted support for struggling firms. In Gansu, local authorities helped feed producer Sui Xiaodong secure financing. Similarly, in Guangxi’s Beiliu City, officials worked on infrastructure and recruitment to aid private growth. Beiliu now hosts over 16,000 private companies, accounting for 85.5 percent of local businesses. Such examples underline how responsive governance can drive grassroots economic expansion.
Meanwhile, Shanghai has led the charge at the national level. On February 5, just after the Chinese New Year, the city released its eighth annual action plan to improve its business climate. In March, the State Council unveiled new guidelines to regulate fees charged to businesses. This initiative promises full-cycle oversight, ending arbitrary charges and boosting legal predictability. Legal clarity, experts say, remains vital for long-term investor confidence.
Another major step came in April with the updated market access negative list. Authorities reduced restricted items to 106, down from 117 two years ago. This list operates on an “entry-unless-prohibited” principle, widening opportunities for businesses across sectors. Guo Liyan of the NDRC said this shift limits administrative interference and encourages entrepreneurial risk-taking.
The most notable legislative breakthrough occurred at the end of April. China’s top lawmakers passed the country’s first law dedicated to promoting private enterprise. Scheduled to take effect on May 20, the law provides long-term legal guarantees for private sector development. It also formalises commitments to fair competition and property rights protection.
Business environment reforms continue to accelerate. Liu Min of the NDRC emphasized that structural policies must adapt to emerging sectors and digital markets. Su Jian, a Peking University economist, added that bold entrepreneurs are entering future industries with high potential. To sustain this momentum, the government must deepen support systems and reduce bureaucratic drag.
Ultimately, business environment reforms have become a core part of China’s economic recovery strategy. Through deregulation, legislative clarity, and practical services, Beijing signals its intent to keep private firms at the heart of long-term growth. As global economies face turbulence, China is betting on internal resilience, market confidence, and policy precision to drive future expansion.
