Wang Huiyao: How Creating a Better Business Environment
05 Aug, 2021  |  Source:SCMP  |  Hits:1479

First, central and local governments should give more support in terms of implementing opening-up policies, ensuring a fair business environment and preferential policies for enterprise development.

Also, policies around the Foreign Investment Law, Regional Comprehensive Economic Partnership and other trade agreements should be implemented. This means improving supporting measures, verifying the thorough implementation of policies in stages and gradually resolving contradictions with existing policies.

Moreover, efforts should be made to create a fair, open and transparent business environment by improving intellectual property rights, formulating industry road maps and forming a mechanism to understand and act on feedback from foreign enterprises.

Second, industry associations should enhance channels to convey the needs of multinational enterprises and participate in the formulation of industry standards and related policy discussions.

As an important link between the government and enterprises, industry associations play a vital role in understanding the needs of various enterprises, regulating the development of industry, serving their members, interpreting policies and passing relevant opinions and suggestions to the government. National and local industry associations should treat all types of enterprises fairly so multinational enterprises can gain a greater sense of participation and help create a fairer business environment.

On the other hand, multinational enterprises can make more efforts to assume corporate social responsibility, enhance their innovation capacity and improve crisis management. They should improve their understanding and respect China’s interests, and they can establish a good image by better assuming corporate social responsibility and participating in telling their successful stories in China.

Geopolitical uncertainty affects the security and stability of multinational firms’ industrial chains. To deal with this, their priority should be to continuously enhance their innovation capabilities and strive to make themselves stronger and bigger.

They should also strengthen their analysis and judgment of the international and domestic policy context and upgrade their capabilities regarding crisis warning and response. Amid a more complex international context, multinational enterprises can serve as a kind of glue between countries.

Creating a better business environment to attract more multinational enterprises to develop in China is an important way to nurture friendly and stable relations between China and other countries. At the same time, China can also promote economic and social transformation and development by attracting and supporting multinational enterprises.

(Wang Huiyao, Founder of the Center for China and Globalization(CCG))

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