Recently, in order to further optimize the business environment in Shenzhen, accelerate the building of an economic center and a modernized international metropolis with global influence, and build a pilot demonstration area of socialism with Chinese characteristics, thus setting an exemplar city of a great modern socialist country, Shenzhen Municipal Party Committee and Shenzhen Municipal Government have issued three impactful documents, namely "Work Plan of Shenzhen for Optimizing Market-oriented Business Environment (2023-2025)", "Work Plan of Shenzhen for Optimizing Law-based Business Environment (2023-2025)", and "Work Plan of Shenzhen for Optimizing Internationalized Business Environment (2023-2025)". On understanding the issuance of the three documents to revitalize the confidence and speed the Shenzhen economy to recall the prosperity of the past, Shenzhen Special Zone Daily has conducted an exclusive interview with Prof. Tao Yitao.
Recently, Shenzhen has issued three "Work Plans", aiming at enhancing and building a first-class business environment. According to Prof. Tao Yitao, Director of CCSEZR, the plans are solid political support for Shenzhen to build an economic center and a modernized international metropolis with global influence, and a pilot demonstration area of socialism with Chinese characteristics, thus setting an exemplary city of a great modern socialist country.
The issuance of the three work plans means that Shenzhen, as the earliest and most successful special economic zone for reform and opening up in China, will continue to be the pioneer in the process of deepening reform, high-quality development and high-level opening up in the new era. It means that Shenzhen maintained its fearless spirit and advanced concepts to uphold fundamental principles and break new ground. It also means that more institutional innovations will take place here and demonstrate to the whole country in the construction of pilot demonstration area of socialism with Chinese characteristics." Prof Tao Yitao said.
On July 25, the meeting of the Standing Committee of the Shenzhen Municipal Committee and the meeting of the Financial and Economic Committee of the Municipal Committee were held, where “the business environment should be market-oriented, law-base and internationalized to accelerate the construction of a first-class ecology” was put forward. Tao considered that a market-oriented, law-based, and internationalized business environment is the basic institutional environment of a mature market economy society. Among them, market-oriented is the foundation, law-based is the guarantee, and internationalized is the key. If not market-oriented, there will be no business environment. If not law-based, there will be no fair market order, and no guarantee for the element mobility without institutional barriers. If not internationalized, there will be no mechanism and channel for China to go global and for the world to understand China, let alone the possibility to participate in international economic and trade exchanges and cooperation, as well as the global value chain competition. The market-oriented, law-based and internationalized business environment are mutually supportive and conducive, creating order and guarding prosperity together.
The business environment is fundamentally the institutional environment of a society. It is the sum of relevant external factors and conditions, including the government, market, society and morality, involved in the process of access, production and operation, and exit of market entities. Generally speaking, people follow the rule of "institution - behavior - performance" to evaluate the impact of the institutional environment on the socio-economy. The institutional environment affects regional economic growth and reflects regional government-market relations by acting on the efficiency of factor allocation.
Cities such as New York, London, Tokyo, Paris, San Francisco and Singapore are top-tier cities with favorable business environments. They are favored by the top companies and talent across the world and help them succeed with comprehensive advantages in business vitality, innovation potential, resident happiness and administrative governance. The successful practices of the top-tier cities prove that the attractiveness of talent is a reflection of the business environments and competitiveness. The pace of scientific and technological progress and productivity development of a society depends on the extent to which the institutional arrangements retain talents and enable everybody to fully display his/her talents. "Today's Shenzhen requires a favorable business environment to attract talent, capital, technology and other scarce factors of production, creating a 'Shenzhen miracle’ in the new era for itself, China and the international community." Prof. Tao added.
Prof Tao also believed that the business environment is the basic institutional environment of a society, which is built by the government, the only provider. The three work plans directed attention to optimizing the way of government management and service. For instance, simplify administrative approval procedures, and reduce or lower the cost of unproductive expenditures by enterprises or individuals. It not only demonstrates the efficiency of the government, but also the perfection of social institutions and regulations. It is not only about saving time and improving efficiency, but about the courage of the government to deepen the reform and the creation of a social atmosphere. Thus, Shenzhen will always be the city for enterprises to identify and take advantage of opportunities, the city with the highest efficiency in realizing the transformation of resources between the old and new modes of production, and the city with the lowest transaction costs for entrepreneurs in allocating unproductive resources. The new policy introduced by the government is believed to create a relaxed and inclusive institutional and cultural environment for the community. A favorable business environment will bring promising prosperity to Shenzhen, a city eager to take off again.
Original source: Shenzhen Special Zone Daily August 10, 2023 Edition: A03
Original Link:
http://sztqb.sznews.com/MB/content/202308/10/content_3104573.html
