Beijing, April 22, 2008 – IFC,
a member of the World Bank Group, in partnership with the Institute of
Finance and Trade Economics of the Chinese Academy of Social Sciences,
today launched the first Doing Business in China report in Beijing.
The report compares the ease of operating a private business in 30 Chinese
cities. It shows that local governments throughout China are promoting
reform of the business regulatory environment and making it easier for
the private sector to grow.
Doing Business in China 2008
finds significant variations, but innovations are underway in all regions
of the country. Although cities in the coastal and southern regions
have implemented more extensive reforms, there are also top reformers in
the western region, where Chongqing and Chengdu have piloted a number of
economic initiatives. Overall some 53 reforms were introduced from
2006 to early 2007. Localities that have made it easier to do business
have been successful in attracting new domestic and foreign investment.
“The report shows that there are many
opportunities for Chinese cities to improve the investment climate. And
they can find examples of effective reforms right here in China, in addition
to practices from outside,” said Penelope Brook, Director for Doing Business
at the World Bank Group. Michael Ipson, IFC Country Manager for China
and Mongolia, added, “Doing Business in China allows municipalities
to identify opportunities for even faster progress. IFC will help implement
best practices to accelerate private sector development and improve the
lives of local residents.”
“The report is a valuable reference
for policymakers,” commented Chen Jiagui, Vice President of the Chinese
Academy of Social Sciences. “It provides information on the ease of doing
business across China that will help local governments learn international
best practices for designing and implementing reforms.” Pei Changhong,
Director of the Institute of Finance and Trade Economics of the Chinese
Academy of Social Sciences, added, "By using the World Bank Group's
global methodology, we can compare results within China and internationally.”
Variation in the business environment
reflects the degree of local government efficiency and innovation in implementing
national laws and regulations. Doing Business in China suggests
that there is significant scope for localities to adopt practices already
underway in other Chinese cities. If these best practices were combined
throughout China, the country’s global ranking on the ease of doing business
would rise from 83 to 67.
Doing Business in China 2008
shows how government regulations facilitate or constrain business activity
in 30 major cities. It measures four key indicators: starting a business,
registering property, getting credit (creating and registering collateral),
and enforcing contracts. While these indicators are not a full reflection
of the local investment climate, they give cities a benchmark on which
to build and demonstrate reforms.
China is the top reformer in East Asia
and among the top 10 globally according to Doing Business 2008, the
World Bank Group’s annual study of the ease of doing business in 178 economies.
Doing Business in China 2008 was produced by IFC in partnership
with the Institute of Finance and Trade Economics of the Chinese Academy
of Social Sciences, a leading academic research organization and an important
policy advisory body in China. More information about the report, data,
and methodology are available online at http://www.doingbusiness.org/china.