On January 30, 2018, the new Shanghai municipal government organized a research symposium on the first working day entitled "Optimizing the Business Environment and Promoting the Development of Private Economy". Deputy Secretary of Shanghai Municipal Party Committee and Mayor Ying Yong emphasized that optimizing the business environment is the key to enhancing the core competitiveness of the city of Shanghai. The great development in Shanghai over the years has largely benefited from the rule of law, internationalization and facilitation of a business environment. Likewise, Beijing has also begun to attach importance to the construction of a business environment. On September 26, 2017, the Beijing Municipal Government issued the "Implementation Plan for Leading the Initiative in the Reform and Optimization of the Business Environment", and proposed that 26 new reforms should be launched in an effort to increase the reform of the business environment in Beijing. The 19th National Congress of the Communist Party of China put forward specific requirements on the priorities and goals of China's economic restructuring, shifting from simply pursuing the scale of economic development to pursuing the quality of economic development.

SMEs that are weak in market negotiation and disadvantaged in competition, especially small and medium-sized innovative enterprises, are able to face the regulatory system that is flexible, efficient and simple, get rid of the complicated rules and regulations, and stimulate their development vitality and achieve economic high-quality development, become the new development situation. Under the new development situation, local development is no longer based on hard benefits such as land and taxes. It depends more on the business environment, including public services, various supporting services, personnel, transportation and various soft services. In general, local governments turn their attention to the construction of a business environment instead of making major investments directly in the market, which can effectively improve the quality of economic development, is an improvement over simply increasing the scale of economic development. Therefore, in the future, local governments may start a new round of competition around building a business environment.