Chinese Business Environment

With the release of the World Bank’s "Global Business Environment Report" every year,the business environment as a new hot spot has received extensive attention from countries all over the world.At the Fifth Plenary Session of the 18 th Central Committee,General Secretary Xi Jinping pointed out: We must vigorously create a legal,international,and convenient business environment,and point out the direction for the development of the business environment.The pros and cons of the business environment are of great significance to economic development.It is not only directly related to the rise and fall of various enterprises,the allocation of production factors,and the strength of development motivation,but also to economic development,social employment,attracting foreign investment,and reducing income gaps.It has an important impact;it is also related to the effectiveness of economic reform,and it is a concentrated test of the modernization of the governance capacity of a government’s national governance system.Since my country’s business environment construction started late and there is still a gap with developed countries,finding the key factors that affect China’s business environment can provide important opportunities for improving China’s business environment,stimulating the vitality and creativity of market players,and releasing economic potential.References and goals.This article summarizes the relevant concepts of business environment,government functions,institutional economics,service-oriented government and other related concepts by combing the relevant theories of business environment and domestic and foreign practice research,and uses the relevant expositions of General Secretary Xi Jinping on the relationship between government and market as research.Based on the theoretical guidance of the World Bank’s "Global Business Environment Report" and the Economist Intelligence Unit’s "Global Best Business Environment" research,a scientific and appropriate business environment evaluation index system has been constructed;collected from Shanghai Relevant research data with the World Bank is used as the basis for the evaluation of the index system;at the same time,the MIMIC structural equation is used to conduct empirical analysis on the designed business environment evaluation model.The results of the study show that my country’s business environment has been significantly improved after the 18 th National Congress of the Communist Party of China.Among them,factors such as the level of opening to the outside world,the level of the rule of law,and government supervision have improved Chinese business environment;factors such as government corruption,labor costs,financing environment,and tax burden have caused the deterioration of Chinese business environment.Among them,because of the existence of invisible institutional transaction costs,the real tax burden of enterprises has not been fully reflected in the research of the World Bank.This article believes that,on the one hand,excessive supervision has increased the various burdens of enterprises and hindered the development of enterprises,but on the other hand,moderate and effective supervision also guarantees the order of market operations,thereby reducing the transaction costs of enterprises.Therefore,the impact of government supervision on the business environment is determined by the quality of supervision.The government can improve the quality of government supervision,improve the business environment,build a high-standard market system,deepen the opening up,and help build a new development pattern that takes the domestic cycle as the main body and the domestic and international double cycles promote each other.