In recent years, there have been frequent government-enterprise disputes in some parts of Inner Mongolia in terms of investment promotion and project construction, and some even went to court.

The foreign merchants that the government enthusiastically solicited at the time eventually became unpopular targets in the local area, and turned from "golden phoenix" to "loose chicken."

(Economic Information Daily, October 11) This situation has not only harmed the investment enthusiasm and legitimate rights and interests of enterprises, but also corrupted the credibility and image of local governments. The result is undoubtedly a loss for both sides.

  For this situation, the local government certainly bears an inescapable responsibility.

Some places have poor resource endowments, so in the process of promoting economic development, expectations for foreign investment are also higher.

In order to attract foreign investors, these local governments often introduce various preferential conditions, such as tax relief, land supply, etc., to draw big and fragrant "pies" for investors.

However, as the legal system of my country’s market economy is becoming more and more complete, the space for local governments to break through the discretion of laws and regulations has almost disappeared. Many so-called preferential policies are destined to be impossible to implement from the beginning, but local governments are trying to attract investment. Out of the "emergency chapter".

Once foreign merchants are attracted by these preferential conditions, the seeds of subsequent conflicts will be planted.

  However, just hitting the board on the local government is not completely objective.

In this regard, investment merchants also have their own responsibilities.

Needless to say, in the early stage of my country's reform and opening up, whether the country attracts foreign investment or the local government attracts foreign investment, there are factors that the government offers preferential terms to attract investment.

However, although this model is "easy to use", it has obvious side effects on economic development. It can only be effective at a certain stage and cannot be maintained for a long time.

Excessive reliance on targeted preferential treatment not only easily leads to corruption of the integration of government and business, but also causes unfairness between foreign companies and local companies, which is not conducive to the establishment of a fair market environment.

After the 18th National Congress of the Communist Party of China, as the reform and opening up has entered a stage of comprehensively deepening reforms, this model has basically been abolished.

However, some companies have failed to keep up with the progress of the market, still indulging in the old environment where the government can make a lot of money by "opening small stoves". They are keen to "sublimate their feelings" with local officials, but lack in-depth research on the investment projects themselves. It is inevitable that this kind of blind investment will fail.

  Today, my country has established relatively complete market regulations, and the transition to a market economy has basically been completed.

When promoting economic development, local governments should also devote more energy to monitoring and serving market entities, rather than "painting cakes" beyond their authority.

Local governments need to attract investment, and strive to improve the local business environment, making it an "investment treasure" for all enterprises.

For enterprises, when deciding on an investment project, they must also fully study the relevant laws and cannot "trust" the preferential terms offered by the local government.

  At present, my country is actively building a pro-Qing political and business relationship.

The government has the responsibility to establish a pro-Qing political and business relationship, and the enterprise has the same responsibility.

The fact that foreign investors have changed from "golden phoenix" to "loose chicken" is, from a certain perspective, the result of the entanglement of political and business relations.

To change this situation, the most important point is that the government and enterprises must clarify the boundaries, the government cannot commit offside, and enterprises should not expect to make money from government relations.

Local governments and enterprises stand in their respective positions and do what they do. The relationship between the two parties can naturally be both close and clear, and a good business and investment environment can be gradually established.

  Zhou Junsheng Source: China Youth Daily

Keywords: government, governments, enterprises, terms, merchants, phoenix, chicken, area, investment, some, parts, investors, painting cake, project construction, investment promotion