By Yuan Dongming, Enterprise Research Institute, DRC & Hao Zhixue, National Institute of Legal Aid, China University of Political Science and Law

Research Report, No. 56, 2020 (Total 5800) 2020-3-25

Abstract: China formulated and implemented “Regulations on Optimizing the Business Environment” in 2019, which is an important measure for the development of a law-based business environment. But it needs to be noted that there is still a long way to go before China’s business environment could become truly legalized. In addition, the protection of legal rights and interests of private enterprises needs to be enhanced in particular. Efforts need to be made for improvement from four aspects including legislation, law enforcement, administration of justice and law-abiding. In terms of legislation, relevant departments need to introduce the law of business practices and the law of administrative procedure, and endow certain legislative power to local governments to gradually improve the legal system. In the field of law enforcement, relevant departments need to strictly implement the information disclosure system, and comprehensively improve capabilities and consummate the mode of law enforcement on the basis of the list of power, the list of responsibility and the negative list. For administration of justice, specific commercial trial organizations need to be established, legal aid to small- and medium-sized enterprises needs to be improved, and a unified national credit system needs to be set up. As regards law-abiding issue, relevant departments need to support private enterprises in establishing a legal risk prevention and control system, guide them to enhance law-abiding awareness, and resolve various disputes through legal means.

Key words: business environment, legalization, private enterprises