China advances in World Bank’s ease of business rankings after sharp increase in reforms

In light of Western criticism and the US-China trade war, Beijing has shown an ‘eagerness to reform’, World Bank says in new report

China jumps to 31st from 45th in the bank’s global ease of doing business rankings

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In 2019, China implemented seven reforms, including streamlining procedures for starting a business and registering property. Photo: Xinhua

Published: 10:00pm, 24 Oct 2019Updated: 9:14am, 25 Oct 2019

In the midst of rising Western criticism and a trade war with the United States, China significantly accelerated the number of reforms it carried out this year or has planned for next, according to a World Bank report published on Thursday.

This “eagerness to reform” has seen China jump from 45th to 31st in the ease of doing business index, the World Bank said in its 2020 “Doing Business” report.

Over the past several years, China has come under increasing criticism from the US and other Western trading partners for perceived barriers to operating in the country, including complaints about restrictions on market access, an uneven playing field for foreign firms, and lack of adequate protection for intellectual property, among others.

The World Bank report suggests that China is heeding the message and starting to address foreign concerns.

Between 2016 and 2018, Beijing enacted just six reforms, including two last year, the international financial institution said.

But in this year alone, the government has implemented seven, including streamlining procedures for starting a business and registering property. Eight reforms will be enacted next year, two of which include making it easier to access to electricity and enforce contracts, the World Bank said.

The figures represent the highest number of reforms that China has made in a decade, while no law or regulation that was enacted this year or is set for next would make it harder to do business in the country, the report said.