China is among the 10 economies where business climates improved the most, and it is on the list of top 10 improvers for a second consecutive year, according to the World Bank’s annual doing business study released Wednesday.
China advanced to a global ranking of 31 this year, up from 46 last year, the Doing Business 2020 study showed. With eight reforms, China improved regulation in most areas measured by the study and implemented the most reforms in the East Asia and Pacific Region.
“The reform impetus in the East Asia and Pacific region continues, with significant improvements made by some economies, such as China,” said Rita Ramalho, senior manager of the World Bank’s Global Indicators Group, which produces the study. “Sustained progress is key to improving the domestic business climate and enabling private enterprises.”
The report measures doing business ranking from 10 areas: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.
“To date, China has shown a notable improvement in the areas of dealing with construction permits, getting electricity, and resolving insolvency,” the study said.
China made obtaining building permits easier by simplifying the requirements for low-risk construction projects and reducing the time to get water and drainage connections, according to the study.
The country made getting electricity easier by streamlining the application process, and it increased the transparency of electricity tariff changes, the study said.
China also made resolving insolvency easier by providing rules for post-commencement credit priority and increasing the participation of creditors in insolvency proceedings.
In the area of paying taxes, the study noted, China made it easier by implementing a preferential corporate income tax rate for small enterprises, reducing the value added tax rate for certain industries, and enhancing the electronic filing and payment system.
In addition to China, India, Pakistan, Saudi Arabia and Togo are also among the 10 economies where business climates improved the most, according to the study.
The 10 economies scoring the highest on the ease of doing business rankings were New Zealand, Singapore, China’s Hong Kong Special Administrative Region, Denmark, South Korea, the United States, Georgia, Britain, Norway, and Sweden.
Governments of 115 economies around the world launched 294 reforms over the past year to make doing business easier for their domestic private sector, paving the way for more jobs, expanded commercial activity, and higher incomes for many, the study said.
This latest edition of the study documents reforms implemented in 190 economies over a 12-month period ending May 1, 2019. The annual study, which started in 2003, evaluates regulations enhancing or constraining business activity for small and medium-sized enterprises.