Research on the Path of the Construction of Rule-of-Law Business Environment in China: Taking Jiangsu Province’s Experience as a Research Sample

Qian Yuwen

Journal of Shanghai University of Finance and Economics Vol. 22, Issue 03, pp. 138 - 152 (2020)  DOI:10.16538/j.cnki.jsufe.2020.03.010

Summary

In recent years, China’s private economic development has encountered some difficulties. We need to attach great importance to the construction of the rule of law in order to optimize the business environment. A good business environment will relieve the private economy. However, there are still many innovative measures that need legal support. It is necessary to improve the legalization of grass-roots government; the crime of illegal fund-raising is becoming more and more serious, and efforts are needed to achieve judicial justice. The legal business environment of Jiangsu Province is in the forefront of the country, which has certain representativeness and typicality. It is an important topic whether we can extract the replicable and generalizable reference experience. At the same time, it is very likely that the World Bank will expand the investigation of cities for economies with a population of more than 300 million; it will conduct regional business environment assessment. Jiangsu Province, as an important province of the Yangtze River Delta economic integration construction, should be ready to meet the challenges and accept the World Bank’s regional business environment assessment. The experience of Jiangsu Province is to optimize the policy system of business environment, innovate the way of enterprise credit financing, and continuously build a business environment ruled by law. The long-term large-scale economic growth is not the spontaneous result of free market, but the benign interaction between government and market. Douglas North proposed: good law+good law enforcement=good economic performance. Therefore, “legal system is extremely important”. A good legal system arrangement can stimulate the vitality of the society and enhance the social productivity. Therefore, the legal system is also an important part of the productivity. Based on the experience of Jiangsu Province and developed countries in building business environment, the path and countermeasures of building legal business environment in China are as follows: （1） We should improve legislation and provide system guarantee in top-level design. （2） We should standardize law enforcement and build a government ruled by law and a government of good faith, innovate the examination and approval service mode, innovate the credit supervision system, and establish the accountability and fault tolerance mechanism. （3） It is important for fair administration of justice and improvement of the court’s judicial capacity to promote the legalization of business environment. Financial supervision + financial trial cooperation regulation can prevent and control local financial risks. We should improve the way of property preservation to prevent and control the criminal risk of private enterprise executives, improve the bankruptcy system, and improve the diversified dispute resolution mechanism.

Keywords

rule of law; business environment; legislation; law enforcement; justice