China’s business environment has gained strong momentum in early 2025. This comes after a wave of new government policies aimed at helping private and foreign companies grow.
In the first quarter of 2025, China saw a 7.1% increase in newly registered private companies. Foreign-funded businesses also grew by 4.3%. After a year of decline, private investment went up slightly by 0.4%. The Small and Medium Enterprises Development Index rose to 89.5 — the highest since 2020.
These numbers show that China’s efforts to support businesses are starting to work.
Stronger Policies at All Levels
Liu Min, an official from the National Development and Reform Commission (NDRC), said that new rules in finance, investment, trade, innovation, and hiring have been put in place. These rules come from both national and local governments. Their goal is to build a better environment for businesses to succeed.
The government is also making it easier for companies to get services.
Faster Services for Companies
In Fuzhou, Fujian Province, real estate worker Li Yukun noticed big changes. He used to wait a long time to get building permits. Now, it takes just one day and can be done online.
Fuzhou has launched many new tools to speed up services. These include 32 special service packages for companies and 16 for individuals. People can finish tasks either online or at one-stop service centers.
Local official Xie Yibo said this is part of a bigger plan. The goal is to make government services faster and easier across the country. From changing company details to getting restaurant licenses, many services are now quicker and more user-friendly.
Wei Qijia, a researcher at the State Information Center, said that better services can improve the business climate. He also said governments should focus on solving real problems for business owners.
In Gansu Province, feed producer Sui Xiaodong got funding help from the local government. In Beiliu City, Guangxi, officials helped with hiring, building roads, and starting projects. Now, the city has over 16,000 private firms — 85.5% of all local businesses.
These real-life examples show how support from local governments is making a difference.
Creating a Fair Business Environment
Since January, China has taken more steps to build a fair and open market.
On February 5 — the first workday after the Chinese New Year — Shanghai announced a new plan to improve its business environment. This is the eighth year in a row the city has made this a top priority.
In March, the State Council introduced national rules on business-related fees. This was the first time such a policy was made at the national level. The rules are designed to stop unfair fees and offer clear guidance to companies.
Liao Chengtao, head of Silian Chuangye Group, said the new rules reduce costs and help create a more stable market.
In another step forward, China released its 2025 market access negative list on April 24. This list shows what sectors are restricted for new businesses. The number of restricted areas was cut to 106, down from 117 in 2022. This is also 30% less than the 151 listed back in 2018.
Guo Liyan from the NDRC’s Economic Research Institute said that this approach — where all sectors are open unless banned — helps reduce red tape and builds trust in the market system.
New Law to Support Private Businesses
At the end of April, China’s lawmakers passed a new law focused only on the private sector. It will take effect on May 20. This is China’s first law made just for private companies.
Experts say this move shows strong support from the government. Su Jian, an economist at Peking University, said that many businesses are exploring new industries. He believes this fresh energy is important for economic growth. He also said the government should keep helping companies move forward.
Why It Matters
With the global economy facing many challenges, China’s support for private businesses is timely. Local and national policies are helping companies grow, create jobs, and boost innovation. These changes are expected to keep China’s economy strong in the months ahead.
