On October 8, the State Council Information Office held a press conference focused on a comprehensive set of incremental policies designed to support economic recovery and enhance structural improvements. During this event, Zheng Bei, the Deputy Director of the National Development and Reform Commission (NDRC), underscored the critical need for improved standardization of law enforcement and regulatory practices affecting businesses.
When asked about the Chinese government’s strategies to boost investment confidence among private entrepreneurs and attract foreign investment, Zheng provided insights into the upcoming policies aimed at enhancing the business environment.
He highlighted that the recent Politburo meeting on September 26 reiterated the importance of providing robust support for businesses facing challenges. This includes a commitment to standardize enforcement and regulatory behaviors related to enterprises while creating a business environment that is market-oriented, rule-of-law based, and aligns with international practices. The NDRC, he explained, is adopting a problem-oriented approach and will collaborate with relevant departments to focus on three key areas.
Firstly, there will be significant improvements to the legal framework governing enterprises. This involves accelerating the development of the Promotion of the Private Economy Law to ensure equal treatment for state-owned and private entities. There will also be a push to revise the bidding law to combat local protectionism and foster fair market competition across all business types. Additionally, updating regulations regarding timely payments to small and medium-sized enterprises will be prioritized. There will be an expedited review of laws and regulations that result in unequal treatment to eliminate institutional barriers that hinder fair competition.
Secondly, the standardization of law enforcement practices affecting businesses will be enhanced. This includes setting up administrative discretion guidelines to promote a more tolerant and prudent regulatory approach, which minimizes disruption to standard business operations. The NDRC aims to standardize cross-regional enforcement practices and establish assistance systems to prevent selective or incentive-based enforcement. A stronger supervisory mechanism for administrative law enforcement will be put in place, complete with strict accountability for arbitrary charges and penalties.
Lastly, the government plans to assist businesses in overcoming practical challenges more effectively. The inter-agency meetings aimed at promoting private economic growth will be fully utilized to create a comprehensive service platform for private sector development. Regular exchanges at various governance levels—national, provincial, municipal, and county—will be strengthened to gather feedback from enterprises and tackle pressing issues. For example, in response to growing concerns about financing, there will be initiatives under the inter-agency framework to broaden the reach of non-repayable renewal loan policies, initially aimed at small micro-enterprises and gradually extending to mid-sized firms in the technology, manufacturing, and agricultural sectors. This effort is aimed at improving loan renewal efficiency and reducing financing costs.
