Market-friendly approach, reforms of govt functions to ensure prosperity

China will ensure that its market-friendly policies and reforms of government functions will help market entities to survive and flourish this year, Premier Li Keqiang said on Thursday.

Li made the remarks while responding to queries on the next steps being taken by the central government to energize market entities, alleviate their difficulties and create a fair market environment, during a news conference after the closing of the annual session of the 13th National People's Congress.

He said that the government is ready to further streamline the administrative procedures, reduce the documentation process and cut the fees and time necessary for approvals, so that businesses can compete more freely in the market.

Last year, the core objective of the reforms was to align macro policies with the requirements of companies and provide them with the necessary support so that the fundamentals of China's economy are consolidated, he said.

Li said during the last four decades of reform and opening-up, China has been developing the socialist market economy system so that the market can play a better, decisive role in the allocation of resources. During the 13th Five-Year Plan period (2016-20), some 60 million new urban market entities were registered, with a substantial growth in their number last year.

Li said that compared with last year when the country worked to "help keep market entities stay afloat", this year, the government will work to sustain and revitalize businesses, as a thriving business community is critical for the vitality and resilience of China's economy.

China will also streamline regulations further to improve the market fairness and ensure that all the participants get adequate opportunities to display their creativity and innovation.

The country will also enhance compliance requirements for businesses associated with new industry development and firmly crack down on malpractices such as cheating, counterfeiting and acts of bad faith, Li said.

Last year, to cushion the economic effect of the COVID-19 pandemic, China introduced several measures that provided vital relief to the country's business community. With a particular focus on stabilizing and protecting market entities, livelihood and jobs, these policies have centered on eliminating unnecessary restrictions and facilitating fair competition, he said.

The sustained efforts have helped businesses stay afloat and boosted job creation, Li said. There are nearly 130 million market entities in China, while the number of self-employed individuals increased by 10 million to 90 million last year.

Such efforts have already made a significant impact on the overall business climate in China, said business leaders.

Will Song, global senior vice-president and chairman at Johnson & Johnson China, said foreign businesses received solid support from the government last year. Expanded market access, better protection of rights and interests through a market oriented and a world-class business environment and a sound legal framework gave companies the necessary confidence to further expand their businesses in China.

Speaking about the Government Work Report for this year, Visal Leng, president of Johnson Controls Asia-Pacific, said China's efforts in stabilizing employment and foreign investment in the past few months are notable.

"China has been stepping up its efforts to foster a favorable business climate. The policies are clear, enabling us to focus on how to implement the government guidelines as efficiently, and as quickly, as possible," Leng said.

Zheng Yiran and Wang Zhuoqiong contributed to this story.