The Rule of Law Provides the Best Business Environment

Chongqing is growing up to an international metropolis with mature environment of rule of law.

Chongqing's popularity as an investment destination for attraction to international large companies has been increasing rapidly, and the legal environment for business in Chongqing has also been continuously improved and upgraded. "Chongqing Currents" exclusively interviewed with Dr. Liang Shuang, an international law expert at Southwest University of Political Science and Law, on topics related to the legal environment for business in Chongqing.

How to develop the concept of "the rule of law is the best business environment"?

The business environment includes all kinds of external environments that an enterprise may confront in its life cycle from start-up, operation to dissolution. The term good business environment fundamentally refers to the external environment that can support enterprises to operate healthily and develop sustainably, and within this the rule of law is an important part. The rule of law environment is an important standard for enterprises to estimate the expectations and guarantees of their interests. When a large-scale international enterprise considers entering the market of a particular host country, it often first studies the bilateral treaty between its home country and the host country or the multilateral treaty to which both countries are parties, prior to the commercial value of the project.

You have worked in the Treaty and Legal Department of the Ministry of Foreign Affairs and were one of the drafters of the China (Chongqing) Pilot Free Trade Zone Regulations. How would you evaluate the current legal environment for business in Chongqing?

Chongqing has always attached great importance to optimizing the business environment. The Regulations on the China (Chongqing) Pilot Free Trade Zone, which I participated in drafting, has a separate chapter dedicated to the business environment. Given the legislative purpose and the process of discussion, we can see the determination of the Chongqing government and all sectors of society to optimize the business environment in Chongqing. In 2020, we were instructed by the Chongqing High People's Court to translate the case allocation rules of Chongqing People's courts at all levels and districts into English, in order to help foreign enterprises. In terms of the environment of rule of law, as an inland logistics hub, Chongqing's innovation in laws of logistics is more prominent at present. Chongqing is becoming an international metropolis with a mature rule of law environment.

You are currently working on the World Bank's assessment of Chongqing's business environment. Could you please introduce some of the relevant information?

I am currently doing preliminary assessment work for the World Bank's assessment of Chongqing's business environment. The World Bank's business environment assessment standards in 2023 involve ten aspects, referring to market access, infrastructure, taxation, international trade and so on. Almost every aspect involves the assessment of relevant laws and regulations. Besides Beijing and Shanghai, Chongqing is the third city in the World Bank's assessment of China's business environment, which is of great significance.

Currently, Chongqing has attracted 316 Fortune 500 companies. What do you think are the main factors attracting large international companies?

As the largest inland city in China, Chongqing has consistently attracted the attention of large-scale international enterprises. Chongqing's traditional industries such as laptop processing and logistics are the highlights. However, the attraction of Chongqing is far more than these. The 2022 notice of "Cheng-Chongqing Co-construction of Western Financial Center Planning" clearly mentions Chongqing as the base for building a west China financial center. In addition to traditional industries and logistics, Chongqing is gradually opening up the financial sector, which is a standard part of a city to truly become an international metropolis. The opening up of the financial sector to promote the flow of international capital will play a particularly important role to settle various international large-scale enterprises in Chongqing.