Abstract: Theory and practice have proved that “the rule of law is the best business environment”. Fairness, openness, predictability, efficient administration, property rights protection, and government credibility are the proper meanings of the rule of law in the business environment. Therefore, in building a business environment of the rule of law, the government should focus on these aspects and build its credibility at both macro and micro levels. On the one hand, a workable evaluation mechanism should be set up to give rewards to honest conducts and punish dishonest conducts. On the other hand,administration credibility of the government should be improved through administrative pledge and information disclosure. And the enterprises also need to strengthen their awareness of risk prevention, property right protection and business operation under the principle of rule of law.

Key words: business environment, legalization, legal awareness, predictability, government credibility