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Booming economy in the first half of 2015

Updated: Aug 12,2015 1:57 PM

Zheng Xing, a 26-year-old “Maker” who owns a technology start-up incubator in Beijing’s Zhongguancun said that he did not have to hire any agent or spend any money to get a business license in just five days. “Maker” refers to people in China who turn their creative ideas into real products with new technology.

About 10 enterprises have already set up an office in his tech incubator. “It is really easy to register a business now,” said Zheng.

In the first half of 2015, over 2 million new businesses were registered in China, an increase of 19.4 percent compared to the same period last year, which means 7 new companies were created every minute. Meanwhile, investment from the public increased by 11.4 percent and constituted 65.1 percent of the overall investment.

Feng Fei, head of the industry policy department under the Ministry of Industry and Information Technology, said that the current reform helped to integrate new technology with the Internet and provided newly established enterprises with numerous opportunities which further promoted mass innovation and entrepreneurship.

Officials from the State Administration for Industry and Commerce estimated that, in the first half of 2015, 20 percent of college graduates and one-third of unemployed received job offers from newly established businesses.

As China aims to promote a public-private partnership (PPP) model for investment, the financial reform offers small and micro businesses a variety of favorable policies which involve a nearly 40 billion yuan tax cut.

As part of the financial market reform, China’s first private bank, Alibaba’s Mybank, was launched on May 27.

The National Development and Reform Commission lifted pricing controls for 30 products and services to enable the market to play a decisive role in resource allocation and to create a fairer and more orderly competitive environment for market players.

The reform of the State-owned enterprises sector culminated with the merger in May of CSR Corp and CNR Corp to form CRRC Corp, with the aim of creating economies of scale to help China compete more aggressively for overseas rail deals.

At the same time, the government increased the minimum wage, lowered import taxes for consumer goods - and is seeking faster and cheaper Internet access to benefit the public.