'Beijing becomes leader in tearing down business barriers'
Thursday, 27 September 2007
BEIJING, Sept 26 (AFP): China has become a leader in tearing down barriers to business, a report from an arm of the World Bank said today.
The world's fourth-largest economy has been "a standout in regulatory reform," the International Finance Corporation (IFC) said in its Doing Business 2008 report.
"While there is room for improvement, it is clear that China is making steady progress in improving business conditions for companies including small- and medium-sized enterprises," Michael Ipson, the IFC's manager for China and Mongolia, told reporters.
The country was ranked among the world's top 10 reformers, along with nations such as Egypt, Croatia and Ghana, the IFC said.
The report in particular singled out two reforms from the past few months in China.
A new property law in March helped to put private property rights on an equal footing with state property rights and made it easier for companies to find collateral for loans.
China also adopted a new bankruptcy law in August, giving secured creditors priority to proceeds from their collateral, according to the report.
This reassurance is likely to make investors more willing to finance projects in China.
However, China was only number 83 when ranked according to "ease of doing business."
"Investors are looking for upside potential, and they find it in economies that are reforming-regardless of their starting point," Michael Klein, a World Bank and IFC vice president, said in a statement.
Doing Business 2008 ranks 178 economies on the ease of doing business.
The world's fourth-largest economy has been "a standout in regulatory reform," the International Finance Corporation (IFC) said in its Doing Business 2008 report.
"While there is room for improvement, it is clear that China is making steady progress in improving business conditions for companies including small- and medium-sized enterprises," Michael Ipson, the IFC's manager for China and Mongolia, told reporters.
The country was ranked among the world's top 10 reformers, along with nations such as Egypt, Croatia and Ghana, the IFC said.
The report in particular singled out two reforms from the past few months in China.
A new property law in March helped to put private property rights on an equal footing with state property rights and made it easier for companies to find collateral for loans.
China also adopted a new bankruptcy law in August, giving secured creditors priority to proceeds from their collateral, according to the report.
This reassurance is likely to make investors more willing to finance projects in China.
However, China was only number 83 when ranked according to "ease of doing business."
"Investors are looking for upside potential, and they find it in economies that are reforming-regardless of their starting point," Michael Klein, a World Bank and IFC vice president, said in a statement.
Doing Business 2008 ranks 178 economies on the ease of doing business.