New research institute on rules-based business unveiled in Shanghai

A research institute for a law-based business environment as well as its 30-member expert committee were unveiled in Shanghai on Monday.

This is expected to better connect the eastern metropolis with international regulations and represent China in global competition, official sources said.

The China Institute for Rule-oriented Business Environment was formally unveiled by the Shanghai Municipal Development and Reform Commission and East China University of Political Science and Law at a ceremony in Shanghai.

With more than 150 members, the institute consists of 14 specialized research areas, with working languages including English, German, French and Japanese.

"It is hoped that the institute will play a contributory role in fulfilling the Chinese government's goal of building a world-class, market-oriented, legalized and internationalized business environment," said Li Shuguang, dean of the School of Law and Economics at China University of Political Science and Law.

"Considering the city's significance in China's economy, Shanghai's business environment not only matters in the city's economic and social development, but also influences the nation's business environment," Li said.

"The experience of the world's major economies has shown that one of the most important characteristics of a prime business environment is the rule of law," Li said.

In May 2023, the World Bank introduced new criteria for assessing the business environment of more than 190 global economies, covering firms' life-cycle of business entry, business location, utility services, labor, financial services, international trade, taxation, dispute resolution, market competition and business insolvency.

"Shanghai will represent Chinese cities to be assessed by the World Bank, and its performance will set a benchmark for other domestic cities," said Li.

According to Li, the institute will strengthen the city's efforts in improving business environment based on the rule of law, which is in line with all the 10 criteria.

Over the years, Shanghai has been pioneering a series of regulations and laws. The municipal government publishes action plans to create a world-class business environment on an annual basis, and in February issued the seventh edition action plan to further upgrade the city's business environment.

A total of 18 laws and regulations have been tailor-made for Pudong New Area to support its high-standard reform and opening-up since 2021.

"The majority of the expert committee members come from universities across China. Their innovative ideas and complementary knowledge structures will inspire each other and nurture breakthroughs," said Luo Peixin, vice-president of East China University of Political Science and Law.

Luo said the institute will strive to promote the formulation and revision of business environment laws and regulations, provide forward-looking and practical suggestions and proposals on problems confronting enterprises, and help Shanghai better align with international rules and represent the country in global competition.

A total of 30 experts were appointed as members of the expert committee during Monday's ceremony.

The members are either experts from comprehensive universities including Tsinghua University, Peking University, Renmin University of China, Fudan University, Wuhan University, or scholars from political and legal professional universities such as China University of Political Science and Law and East China University of Political Science and Law.