China’s market economy is not only sustaining but thriving, despite some Western speculation to the contrary. Recent developments highlight China’s significant strides in optimizing its business environment—a progress widely acknowledged by the international community.
According to CEOWORLD magazine’s ranking of the best countries in the world to invest in or do business for 2024, the Chinese mainland ranks 34th. This assessment examines 11 key indicators, including corruption levels, degrees of freedom, tax system rationality, and quality of life. China’s ongoing efforts in these areas have provided a more stable, transparent, and predictable investment environment for global investors and entrepreneurs.
Domestically, China has been streamlining administration, delegating powers, and enhancing regulation. Simplifying approval processes, reducing the cost of starting a business, optimizing market supervision, and easing business registration have all contributed to this improvement.
As of the end of September 2024, there were over 180 million private economic entities in China, accounting for 96.37 percent of the total number of business entities—a year-on-year growth of 3.93 percent and a growth of more than four times over the past decade. Among these, 55.5 million were private enterprises, up 6.02 percent year on year, and 125.3 million were individual businesses, a year-on-year increase of 3.03 percent. These figures demonstrate the significant enhancement of China’s business environment and the unleashing of market vitality.
The private economy, an integral part of China’s market system, plays an irreplaceable role in promoting economic growth, creating employment, and optimizing industrial structures. China has placed great importance on developing the private economy, continuing to promote equal protection for all types of economic entities in accordance with the law. This commitment has made it easier for private economic operators to register and has fully released the vitality of the market.
In terms of industrial structure, the private economy is pivotal in sectors like services and manufacturing. For instance, private businesses constitute 97.97 percent of operations in China’s wholesale and retail industry. Serving as a bridge between production and consumption, the high proportion of private businesses in this sector reflects China’s vibrant commodity market.
Reference(s):
cgtn.com
