Mainland among 'most improved'

08:10, November 05, 2010      

Email | Print | Subscribe | Comments | Forum 

The Chinese mainland has been one of the 15 most-improved economies in the past five years for local companies to conduct business, the latest report released by the International Finance Corporation (IFC) and the World Bank (WB) on Thursday showed.

Fourteen regulatory changes have been introduced to make it easier to conduct business on the mainland, according to the report Doing Business 2011: Making a Difference for Entrepreneurs.

But the mainland's overall ranking in the report slid to 79th from 78th because of the relatively better improvements in other economies, said Karim Belayachi, co-author of the report.

"China has made improvements in the indicator of paying taxes. But many countries are reforming and in East Asia and the Pacific area 75 percent of the countries have improved," he said.

The report analyzes regulations that apply to an economy's businesses during their life circle, including start-up and operations, trading across borders, paying taxes, and closing a business. It does not measure security, macroeconomic stability, corruption, the skill levels, or the strength of financial systems.

The results were mainly based on nine indicators - starting a business, paying taxes, trading across borders, registering property, dealing with construction permits, getting credit, closing a business, enforcing contracts and protecting investors.

From June 2009 to June 2010, the mainland made it easier for companies to pay taxes by clarifying the calculation of taxable income for corporate income tax purposes. The time for tax compliance was also cut by more than 20 percent from 504 to 398 hours per year, said Neil Gregory, acting director of Global Indicators and Analysis, the WB and IFC.

The mainland unified criteria for corporate income tax deduction and shifted from a production-oriented value-added system to a consumption-oriented one, the IFC said in the report.

Belayachi said the process of starting a business in the mainland has some room for improvement.

"Countries around the world are establishing one-stop shops in which they are taking away burdens on potential owners of small and medium-sized enterprises so that they can set up companies more easily," he said.

The mainland ranked 151th globally in terms of the ease of starting a business, with 14 procedures for an entrepreneur to undergo with government agencies, 4.5 percent of income per capita as cost and 118.3 percent of income per capita as minimum capital.

It ranked 15th in enforcing contracts, 38th in trading across borders, 114th in paying taxes and 181st for dealing with construction permits.

Singapore, Hong Kong and New Zealand lead the world in the ease of doing business for local firms, the report said.

Globally, conducting business remains easiest in the high-income economies of the Organization for Economic Cooperation and Development.

For the first time in the eight years of the Doing Business reports, economies in East Asia and the Pacific were among the most active in making it easier for local firms to do business, the report said.

Entrepreneurs in Sub-Saharan Africa and South Asia have it hardest and property protection was weakest across the nine areas of business regulations that were considered in this year's ranking, the report said.

Source:China Daily

(Editor:黄蓓蓓)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Chinese Navy soldiers hold an evening party marking the upcoming 62nd National Day aboard Chinese Navy hospital ship "Peace Ark" in the Pacific on Sept. 28, 2011. The Chinese National Day falls on Oct. 1. (Xinhua/Zha Chunming)
  • Photo taken on Sept. 30, 2011 shows the crowd at the plaza of Beijing Railway Station in Beijing, capital of China. The railway transportation witnessed a travel peak with the approach of the seven-day National Day holidays on Friday. (Xinhua)
  • A man wearing high-heel shoes takes part in the 3rd annual Walk a Mile in Her Shoes, an event when men literally walk in women's shoes to raise awareness about ending violence against women, at Yonge-Dundas Square in Toronto, Canada, Sept. 29, 2011. (Xinhua/Zou Zheng)
  • Photo taken on Sept. 29, 2011 shows a cargo ship in danger on the sea near Zhuhai City, south China's Guangdong Province. Cargo ship Fangzhou 6 of Qingzhou of southwest China's Guangxi Zhuang Autonomous Region lost control after water stormed into its cabin due to Typhoon Nesat on the sea near Zhuhai Thursday, leaving 12 crew members in danger. Rescuers rushed to the ship and saved them by using a helicopter. (Xinhua)
  • Actress Gong Li poses for L'Officiel Magazine. (Xinhua Photo)
  • Demonstrators from the Occupy Wall Street campaign hold placards as they march in the financial district of New York September 29, 2011. After hundreds of protesters were denied access to some areas outside the New York Stock Exchange on September 17, demonstrators set up a rag-tag camp three blocks away. Zuccotti Park is a campground festooned with placards and anti-Wall Street slogans. The group is adding complaints of excessive police force against protesters and police treatment of ethnic minorities and Muslims to its grievances list, which includes bank bailouts, foreclosures and high unemployment. (Xinhua/Reuters Photo)
Hot Forum Discussion