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Unlike study tour participants in other countries
30-March-2018 08:25
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BEIJING, Oct. 31 (Xinhua) -- Creating a system that builds business trust will undoubtedly be high on China's agenda after the State Council decided to relax company registration requirements at the weekend.


Overseas analysts say only giving full play to such a system can stimulate the vitality of social investment in China.


According to the State Council executive meeting Wholesale Oklahoma Sooners Jerseys , perfecting a regulatory and legal system that builds confidence in the business sector is as important as lowering the cost of starting a company and encouraging social investment.


As an important part of the Chinese government's administrative reform, building a system to track corporate credit information and help create an efficient and fair market environment to mobilize social capital has won recognition from overseas economic experts.


"This will definitely have an impact on China, which is on the track of transformation," UBS Wealth Management for Asia-Pacific Investment Pu Yonghao told Xinhua.


The lack of an effective mechanism for evaluating companies had a negative influence on their financing and running Wholesale Oklahoma State Cowboys Jerseys , he said, explaining a lot of small- and medium-sized companies had faced difficulty obtaining finance from banks.


Moreover, the ineffective system bred serious incidents that harmed public health in the past few years, he said Wholesale Oregon Ducks Jerseys , referring to the food safety issue which has caused a loss of confidence in some industries and even created a confidence crisis in the whole society.


The New York Times has pointed out lack of trust would curb China's development, while honesty and integrity would help.


Former WTO director-general Mike Moore has said China does not lack technology, funds or talent, but is in urgent need of a mechanism that will help it adapt to fair and transparent international competition.


With it being easy to start a company Wholesale Penn State Nittany Lions Jerseys , the trust system must be tightened in order to prevent business fraud and create a fair and orderly market environment, said Yuming Ying, managing director of China Eagle Asset Management Ltd.


As China undergoes economic transition, those crises of trust that repeatedly happened to Chinese enterprises not only undermined consumer confidence Wholesale South Carolina Gamecocks Jerseys , but also hindered the social capital from entering the market, Ying said.


Promoting the establishment of a credit system among enterprises will encourage corporate self-discipline, which will in turn boost the confidence of social investors and stimulate the enthusiasm of private investment.


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