Business environment proves its value in stimulating innovation

When Time magazine published the 2025 TIME100 AI list last week, it was uplifting to see some Chinese names among the most influential people who are shaping the future of artificial intelligence globally. For example, Liang Wenfeng, CEO of DeepSeek; Ren Zhengfei, founder and CEO of Huawei; and Wang Xingxing, founder and CEO of Unitree Robotics are mentioned in the "leaders" category, alongside the names of Elon Musk, founder of xAI; Mark Zuckerberg, founder and CEO of Meta; and Sam Altman, CEO of OpenAI.

The presence of Chinese names signals not only recognition of their achievements but also that of the broader environment that has allowed such talents to thrive. China's innovation story is as much about policy and governance as it is about invention, and the country's evolving business environment lies at the heart of this progress.

Domestic reports show how this supportive ecosystem is coming up step by step. In the first half of this year, the number of new private businesses and the number of foreign-invested enterprises have both gone up; a total of 4.35 million new private enterprises were established, up 4.6 percent year-on-year, while the number of new foreign-funded entities rose by 4.1 percent.

The large number of new entities emerging in the first half of the year indicates abundant untapped market and business opportunities. The statistics reflect market entities' rising confidence in growth prospects, despite a very complex external environment, indicating that the economy has strong resilience and potential.

What stands out is not only the numbers but also the underlying governance approach. To optimize the business environment, the government has vowed to focus on ensuring equal opportunities and fair competition. Market access is the prerequisite for business entities to participate in economic activities, while fair competition is the fundamental principle of a market economy. It is required that the government remove all obstacles that hinder the equal use of production factors in accordance with the law. In this regard, full efforts are being made to implement these requirements, address the typical problems faced by private enterprises in relevant fields and create a more equitable development environment for them.

Despite uncertainties in the global economy, China's economy has demonstrated both resilience and dynamism. That should be attributed not just to its macroeconomic strength, but to carefully calibrated policies aimed at stabilizing employment, boosting enterprise vitality and aligning domestic and international economic circulation.

China's innovation surge is inseparable from the country's deepening reforms in its business environment. Three elements stand out clearly. First, targeted regulation reduces any unnecessary burden while safeguarding quality and safety. Second, digital tools streamline administrative procedures, freeing entrepreneurs to focus on innovation rather than paperwork. Third, a transparent and law-based system ensures predictability, builds trust and attracts long-term investment.

Of course, some challenges remain. The innovations and opportunities arising from them should be extended to smaller companies and more remote regions. Moreover, in rapidly evolving sectors such as AI, biotechnology and green technology, regulatory clarity will need to balance flexibility with safety.

Yet the trajectory is clear. Time magazine's recognition of Chinese AI industry leaders is a mirror. It reflects the fact that talent flourishes where policy is supportive, governance is fair and services are efficient. By continuing to deepen reforms, providing the "sunshine and rain" of a world-class business environment, China is positioning itself not just as a participant, but as a major player, in the next wave of innovation.

- Zhang Xi, China Daily