By Zhang Chun, Jia Xiaoke, China Development Research Fund

Research Report, No.152, 2018 (Total 5427) 2018-9-12

Abstract: Interviews with 41 of the top global 500 companies in China show that multinational companies agree with China's opening-up environment and the policy direction and have a long-term confidence over China's economic growth and market, but there are still some long-term and reasonable demands about the business environment that cannot be effectively solved. The prominent issues include: the delay in fulfilling the opening promise, the key areas remaining not open to foreign business, the backward standards hindering the entry of advanced products, the “one size fits all” regulation, excessive law enforcement and infringement of the rights and interests of enterprises. Multinational companies look forward to government’s implementing the policies that have been issued as soon as possible and to fulfilling their commitments one by one. They also expect to effectively safeguard the rights and interests of enterprises and ensure the equal national treatment of foreign-funded enterprises and to improve the regulatory capacity and law enforcement level of government and stabilize market expectations. Solving these problems is the key point to improving the business environment and the fundamental measure to create a new competitive advantage in the new round of international competition. If these problems continue to exist, it will shake investors’ confidence, damage government credibility and make policy implementation more difficult.

Key words: business environment, attracting foreign investment, multinational companies