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Business / Economy

China's institutional reform spurs business start-ups

(Xinhua) Updated: 2014-11-14 14:19

BEIJING - As Chinese President Xi Jinping said at the APEC CEO summit on Sunday, reform and innovation are of great significance to the economy of China as well as that of the world, the Chinese government is pushing forward a host of reforms, aiming to give more opportunities to those who embrace reform and innovation.

The president said that to comprehensive deepen reform, China needs to stimulate the market vitality, broaden the path for innovation, advance opening-up at a higher standard.

Over the past years, many enterprises, which develop innovation as Alibaba does by means of technology, model and business idea, have emerged in various industries. And they have become the dominant force in facilitating China's economic transformation and structural optimization as well as in increasing employment.

Nowadays, innovation is not only a term used in the area of technology, but one employed to refer to the introduction of new ideas or methods in institutional reform, governance and growth model.

Actually, institutional innovation helps streamline administration and delegate power. The central government has transferred more than 630 administrative approval rights to local authorities, and reduced 10 billion yuan administrative expenditure for enterprises and individuals.

To make the vitalities of labor, knowledge, technology, management and capital race to burst is the sluice gate to inspire business start-ups.

To encourage business start-ups and innovation, the government also can help enterprises grow into vigorous competitors through adopting more and better reform policies, according to Carol Liao, Asian regional chief of the Boston Consulting Group.

In building a new environment for innovation, the central government is pushing ahead various reforms, which focus on the creation of an easy, fair, open and transparent environment for innovation, to let more gutty and capable people to join in the process of market competition and wealth creation.

Since the beginning of this year, China has boldly unleashed market vitality, broken the institutional barriers containing the vigor of the society, and dismantle resistances and partitions confining key economic components and resources.

The central government has created the "non-stop vehicle" and the "fast track" for small and micro-sized enterprises' innovation and growth by rendering tax and financial support, while vigorous and creative small and micro-sized enterprises find more and more space for growth, and become an important force in improving the structure of the industrial chains and boosting the market integration and the flow of labor forces.

Real competition can spur innovation and inspire the creativeness of entrepreneurs. It is thus very important to introduce a fair and transparent mechanism for competition.

To facilitate the transformation, upgrade the economic structure and deepen market reform requires a more efficient market supervision system, the rule of law and a fair and just market.

Under the central government's policy mix of fighting monopoly, cracking down corruption, improving the people's livelihood, transforming government functions, and fostering innovation, China is shaping a "new normal," the essence of which is not just about speed but more relevant to an improved economic structure that relies more on the tertiary industry and consumption demand, and innovation.

In the future, a boom and prevalence of innovation-oriented businesses in China will surely form an internal driving force to boost steady economic growth of and improve people's livelihood.

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