Optimizing the business environment is a necessity for the healthy development of the market economy, and it is also an inevitable trend for China to deepen institutional reform. The understanding of the business environment is constantly deepening in five dimensions in China's specific economic practice. Firstly, the understanding of the scope of business environment has undergone a transformation from "narrow" to "broad", from a narrow regulatory environment mainly represented by preferential investment policies to a comprehensive concept under the concept of "enterprise ecosystem". Secondly, the understanding of the constituent elements of the business environment has undergone an upgrade from "hard" to "soft", from early understanding of infrastructure such as transportation, communication, water and electricity, as well as various hardware level elements such as human capital and ecological environment, to considering the social, cultural, and institutional soft environment elements that affect the operation of commercial entities as an important part of the business environment. Thirdly, the service targets of the business environment have experienced an expansion from "large" to "new", from the 1970s mainly serving large enterprises in reducing costs and optimizing location decision-making services, to focusing on serving small and medium-sized enterprises and start-up enterprises. Fourthly, the main focus of optimizing the business environment has gone through a deepening process from focusing on investment promotion policies to comprehensive "streamlining management and service" reforms. It has shifted from strengthening infrastructure construction, reducing taxes, providing financial subsidies, and other investment promotion policies to focusing on government functional reform "streamlining management and service". Fifthly, the optimization of the business environment has gone through a process from central attention to local promotion. Optimizing the business environment is not only an important breakthrough in the development of local economy, but also an important focus for the transformation of administrative functions of local governments. A good business environment is like sunshine, water, and air, which are indispensable to market entities. Optimizing the business environment is necessary to ensure market competition and achieve high-quality development. The socialist market economy under the leadership of the CPC should not only follow the general laws of market economy, but also play the role of market competition in optimizing resource allocation. Improving the basic market economy systems related to market access and fair competition can ensure that all capable investors have the right to enter the market and compete fairly, mobilize the enthusiasm of all enterprises, including foreign-funded enterprises, private enterprises, and state-owned enterprises, and promote the transfer of resource allocation to the most efficient production and service sectors. Optimizing the business environment is necessary to ensure the healthy development of the private economy. Starting from the construction of market systems, optimizing the business environment can create a favorable operating ecological environment for all enterprises through more in-depth administrative reforms and institutional innovation. The private economy will also eliminate some institutional barriers formed by traditional regional management methods, gain equal competition opportunities with the state-owned economy, and better play its role as an important innovator in the Chinese market. Optimizing the business environment is necessary to improve investment expectations and boost market confidence. For investors,