Rule of law in the business environment and private enterprise industry chain development

As China continues to advance its economic reforms, the development of private enterprises has become a crucial component of the nation’s economic growth. Based on data from publicly listed companies in China's A-share market from 2008 to 2023, the paper employs a bidirectional fixed-effects regression model. The results indicate that, firstly, the legalization of the business environment has a significant positive impact on the development of private enterprise supply chains; secondly, credit loans exert a significant positive influence on the development of private enterprise supply chains; finally, the legalization of the business environment plays a moderating role between credit loans and the development of private enterprise supply chains. Further analysis reveals that the tax reduction and administrative streamlining reforms have a significant positive effect on the development of private enterprise supply chains. In conclusion, this paper highlights the critical role of business environment legalization and credit loans in promoting the development of private enterprise supply chains, while also emphasizing the importance of tax reduction and administrative reforms as key drivers of growth.