A fresh report from the World Bank ranks China among the world's top ten nations for doing the most to improve the ease of conducting business in their country. The report noted that China has implemented eight major reforms since 2018, as it advanced the country's ranking for ease of doing business from 46th to 31st this year.

Read more: World Bank places China in top 10 most improved list for ease of doing business for second consecutive year

Highlight for China was its easing of red tape involving construction permits. It now takes 111 days to complete building permitting procedures in China while the average in East Asia and the Pacific is 132 days. China also advanced to 28th worldwide for its strengthened protection of minority investors. However, the World Bank said that while the country has made substantial progress in a host of sectors, it still needs to improve in such areas as taxes, credit, and cross-border trade.

Meanwhile, China has released a regulation to further optimize the business environment. The regulation makes it clear that China will do more to ease market access for investors. Also, it promises a level playing field for all market entities entering sectors outside of China's "negative list."

The list, which details what sectors overseas investors can access, will also be shortened. In addition, the regulation pledges several new mechanisms to facilitate the protection of intellectual property rights. In terms of that, industry insiders are optimistic about the future.

"Aside from this regulation, this year also saw China pass its landmark Foreign Investment Law. If these rules can be implemented properly, overseas investment and business conditions can benefit each other. The future is very promising," said Yin Guohui, deputy director of Shenzhen Association for Foreign-invested Enterprises.

Overseas investors have changed their strategies from emphasizing cost to the market. Huang Hanquan from China Macro Economy Research Institute said that investors were paying more attention to China's low labor costs before, but it has changed nowadays.

"They attach greater importance to China's huge market potential. As the country opens its manufacturing sector wider to the outside world, investors are more prone to bringing their money here through wholly owned enterprises or holding a stake in Chinese firms," Huang added.