China joined the ranks of the world's top 10 most improved economies for ease of doing business for the second year in a row thanks to a robust reform agenda, the World Bank Group's Doing Business 2020 study says.

China carried out a record eight business reforms during the 12 months to May 1 and ranked 31st globally on the ease of doing business rankings with a score of 77.9 out of 100. It ranked 46th last year and 78th in 2017.

"China has undertaken substantial efforts to improve the domestic business climate for small and medium-size enterprises, maintaining an active pace of reforms," said Martin Raiser, World Bank Country Director for China. "Laudable progress has been achieved on a number of Doing Business indicators, particularly in the area of construction permitting."

Yin Guohui, deputy director of Shenzhen Association for Foreign-invested Enterprises, noted that the issuance of the Foreign Investment Law, a "negative list" system and recent regulations on optimizing the business environment will help improve the country's business environment.

This is the second year in a row China has earned the recognition. It comes despite the bitter trade war with the United States, which is demanding reforms from Beijing to protect intellectual property and open its economy further to American businesses. 

Despite the U.S.'s complaints, the report credited China with improving protections for minority investors, strengthening procedures for enforcing contracts, and making trade easier through changes at customs offices and ports. 

Huang Hanquan with China Macro Economy Research Institute said, "Overseas investors have changed their strategies from emphasizing costs to the market. Previously, investors were paying more attention to China's low labor costs. Now, they attach greater importance to China's huge market potential."

Raiser pointed out a challenge for the country to enforce robust reforms across the country. One of the key questions in China is how to transfer the reform experience of Beijing and Shanghai to other cities further inland, where the places do not enjoy the same natural advantages for business.

Efforts in optimizing business environment

Chinese Premier Li Keqiang announced in March that China will reduce the tax burdens and social insurance contributions of enterprises by nearly two trillion yuan (about 298 billion U.S. dollars) in 2019 in bolstering the corporate sector, especially private and small enterprises.

China also announced measures in April to reduce government-levied charges and operating service fees by more than 300 billion yuan (44.7 billion U.S. dollars) this year. Coming into effect from July, the measures are aimed at further lessening the burden on businesses and individuals.

The implementation of a series of measures to streamline administration, facilitate trade and large-scale taxes, and fees cuts have led to the expansion of private sector's imports and exports in volume and proportion. The 6.12 trillion yuan (890 billion U.S. dollars) contribution from the private sector accounted for 41.7 percent of China's total foreign trade in the first half of this year.

China's State Council published regulations on Wednesday in optimizing business environment to unleash the productive force, as well as advance high-quality development. 

Released under a decree signed by Premier Li, the regulation will become effective on January 1, 2020.

The regulation specifies the principles and directions for fostering a stable, fair, transparent and predictable business environment in alignment with advanced international levels.

It also clarifies rules regarding the faster establishment of enterprises, equal market access, solid implementation of tax and fee reduction policies, and easing financing difficulties. 

Meanwhile, the regulation details efforts on cutting red tape, streamlining administrative approval, and improving supervision and administrative law enforcement.

China also passed the Foreign Investment Law (FIL) in March in supporting a high standard of opening-up under new circumstances.

The law intends to bring foreign businesses broader market access, protect their intellectual property, prohibit forced technology transfer, and guarantee a "level playing field" for both foreign and domestic companies.

Response to the trade friction

China will continue to keep its door open to foreign investment despite trade frictions, said Huang Libin, spokesman for the Ministry of Industry and Information Technology (MIIT) earlier this week.

China looks at the trade friction between China and the United States with an open mind and will further open sectors including telecommunications, internet and autos to foreign investment, he added.

More than five million private companies were set up during the first three quarters, up nearly 10 percent year on year. The profits for private firms surged 6.6 percent year on year, said Huang.

(CGTN's Xing Ruinan also contributed to the story.)