To turn China’s manufacturing industry from big to strong

it is urgently needed to promote its high-quality development

for which the business environment (BE) is an important factor. Based on the data from the World Bank’s China Enterprise Survey conducted in 2012

this article explores the effect and mechanism of BE optimization’s influence on the high-quality development of manufacturing enterprises. The results suggest: First

BE optimization plays a significant role in promoting the high-quality development of manufacturing enterprises

and this conclusion is still valid after a series of robustness tests; Second

the effect of BE optimization on different types of enterprises is heterogeneous

which plays a relatively greater role in developing non-state-owned

small and medium-sized

low-tech and financing-constrained manufacturing enterprises; Third

mechanism tests show that BE optimization can promote the high-quality development of manufacturing enterprises by reducing non-productive expenditure

stimulating innovation and improving productive efforts of entrepreneurs. The above results have important policy implications for finding an effective high-quality development path for the manufacturing industry and for continuously optimizing the business environment.