City redoubles business-friendly campaign 
2019-03-06
CREATING an ideal business environment is important for Shanghai’s future development and its ability to cope with slowing growth.
The subject dominated Shanghai policies last year, and the campaign toward a business-friendly city shows no sign of let-up in 2019.
On the first working day after Spring Festival, the Shanghai Committee of the Communist Party of China and city government officials held a major conference to discuss it and other topics.
“For a city like Shanghai, urban development cannot rely solely on preferential policies or low-factor costs,” Li Qiang, Shanghai’s Party secretary, told the conference of government officials and representatives of various enterprises in the city. “Only by optimizing the business environment can the city gain the upper hand and further sustainable development.”
Li pointed out that improving the business environment is also an important factor in coping with downward pressure on the economy.
The conference came up with measures and policies covering 25 aspects of commercial activity, including startups, construction permits, access to electricity, cross-border trade and taxation.
“We focused mainly on the aspects with big problems last year,” Li said. “This year, we will lay emphasis on more systematic application of plans to optimize the business environment in a comprehensive manner.”
The effort has produced some successes. In 2018, 835 brands appeared in their first stores in Shanghai, and the aggregation of international retailers rose to second place in the world, trailing only Dubai.
The World Bank’s 2019 Doing Business report showed that China’s business environment has risen 32 places to rank 46th in the world. Shanghai, as one of the two sample cities in the report, weighed in at 55 percent.
Why do so many Chinese and foreign companies choose Shanghai? Analysts point to the city’s legal system, international environment and efforts to roll out a red carpet for businesses.
It took less than half a year for Tesla’s Shanghai plant to go into operation after the agreement was signed, and Chief Executive Officer Elon Musk said he was amazed at the efficient cooperation of Shanghai officials, the city’s good business environment and its openness.
Shen Kaiyan, director of the Institute of Economics of the Shanghai Academy of Social Sciences, said creating an even better business environment is the key to enhancing the city’s competitiveness.
“There is now still a gap between regulatory concepts and the awareness that they have to serve enterprises,” Shen said. “The government needs to enhance the awareness and respect the dominant position of entrepreneurs and market rules to solve related problems in earnest.”
One of the city’s top priorities in the first quarter of 2019 is to work with state-level authorities to draft and implement plans for an expansion of the city’s free trade zone.
Companies in the zone are to be given preferential treatment to conduct offshore trading, offshore financing and digital trading. Shanghai Mayor Ying Yong said the area is expected to exert global influence and competitiveness.
The city will also help quality domestic companies list on the planned technology innovation board of the Shanghai Stock Exchange and foster local innovation-driven startups.
China is drafting guidelines for the integrated development of the Yangtze River Delta region, and Shanghai will be a major player in the important initiative, Ying said.
The mayor said Shanghai will deepen innovation in social governance and introduce creative thinking in urban management, Ying said.
As for local lifestyles, the city will ensure that plans to improve air, water and soil quality proceed smoothly. Domestic waste sorting will be implemented citywide, and community health care, education and elderly care will feature high on the government agenda.
At the same time, the city will accelerate programs to revitalize rural areas, improve the integration of urban and rural areas, and modernize farming.
Consumer consumption will continue to drive economic growth. The city is already planning for the second China International Import Expo later this year, Ying said.
“We will embrace challenges, take active measures to counter risks and grasp all opportunities to pave the way for high-quality growth,” the mayor pledged. “We will take every means possible to stabilize employment, the financial sector, trade, foreign investment and growth expectations.”
