Night view of Shanghai city. [Photo/IC]

The Shanghai Development Strategy Institute issued a system to evaluate the business environment of global cities on June 5, further propelling forward Shanghai's efforts to reform and improve its business environment.

A global city, also called world city, alpha city or world center, is a city generally considered to be an important node in the global economic system, whereby the links binding the city have a direct and tangible effect on global affairs.

Based on a year of comprehensive comparative study on the business environment of Shanghai and other top global cities, the evaluation system includes 12 first-level indicators and 36 second-level indicators according to the appeal of a global city's business environment.

Different global cities have different plans for optimizing their business environment. For Shanghai, the key is to bring together a large number of global functional institutions.

Zhou Zhenhua, dean of the institute, believes that what is most important is not general enterprises, but headquarters of multinational corporations and functional institutions with a global impact, giant producers and service providers as well as international NGOs.

Unlike the World Bank's focus on small and medium-sized enterprises, the new evaluation system examines patent protection by science and technology enterprises, urban openness, and international connectivity which is highly valued by multinational companies, fully reflecting the demands of enterprises in terms of business environment.

Zhou Guoping, vice director of the Shanghai Municipal Government Development Research Center, said the evaluation system has taken into consideration factors such as markets, legal systems and administrative efficiency of the government, adding that "openness, competition and protection" should be the core words for the future business environment reform in Shanghai.

Investigating enterprises in terms of their business environment at different periods is another highlight of this research, which is conducive to the implementation of more effective policies.

"Shanghai should continue to improve its business environment in line with the requirements for a global city in a phased, focused and accurate manner," Liu Xuehua, Minister of Economics of the Institute said.

The city should open up its markets to attract more influential enterprises and formulate more scientific talent policies, including high-level talent introduction programs, to attract more international talents.

To better serve enterprises, local government should promote service processes and minimize enterprise-related administrative fees through e-government and other means.

In order to facilitate the development of enterprises, the city should create a convenient cross-border trade audit system and enhance the protection of intellectual property rights.