BEIJING, Feb. 20 (Xinhua) — Amid simmering global trade tensions and a surge in protectionism, China is ramping up efforts to expand high-standard opening up and reinforce its appeal to foreign investment, providing the much-needed certainty and opportunity to global businesses.
From unveiling a comprehensive action plan to attract foreign investment to further easing market access restrictions for investment, China is leveraging its vast domestic market, dynamic innovation and long-term economic resilience to cement its status as a magnet for foreign investment.
GREATER APPEAL
“Foreign investment has been a witness and contributor to, as well as beneficiary of China’s reform and opening up,” Ling Ji, vice minister of commerce and deputy China international trade representative, said Thursday at a press conference.
According to Ling, foreign-invested enterprises now contribute nearly 7 percent of China’s employment, one-seventh of tax revenue and about one-third of its imports and exports.
Multinationals are optimistic about the long-term prospects of investing in China and have a strong willingness to expand their presence in the country, Zhu Bing, an official with the Ministry of Commerce, said at the press conference.
Although the foreign direct investment (FDI) in the Chinese mainland remained subdued amid a global downturn, signs of improvement have started to emerge. FDI in the Chinese mainland in actual use totaled 97.59 billion yuan (about 13.61 billion U.S. dollars) in January, up 27.5 percent from the previous month.
In terms of source countries, FDI from the United Kingdom, the Republic of Korea, the Netherlands and Japan surged 324.4 percent, 104.3 percent, 76.1 percent and 40.7 percent, respectively, last month.
With vast business opportunities and dynamic innovation, the Chinese market has always been a top priority for multinationals, Zhu said, adding that China, as always, welcomes businesses from all countries to continue increasing investment in China and sharing its development opportunities.
STRONGER SUPPORT
Despite rising trade protectionism and geopolitical tensions, China has stayed committed to expanding high-standard opening up and fostering a business environment that is market-oriented, law-based and internationalized.
Amid the country’s latest efforts to encourage foreign investment, a new action plan was unveiled Wednesday to stabilize foreign investment, with 20 specific measures in four aspects, including further expanding market access in various sectors and increasing efforts to promote investment.
Among the measures, the plan will encourage foreign equity investment in China to attract more high-quality FDI in the country’s listed companies.
The country will continue expanding its pilot programs to open up fields such as telecommunication and medical services in a timely manner. It will also lift restrictions on domestic loans for foreign-invested enterprises, allowing these firms to use domestic financing for equity investments, according to the plan.
Since 2024, the country has introduced measures to expand opening up in sectors such as value-added telecommunications and healthcare, completely removed foreign investment access restrictions in manufacturing, and reduced nationwide foreign investment access restrictions from 31 to 29 items.
Looking forward, Hua Zhong, an official with the National Development and Reform Commission, said the country would align with high-standard international economic and trade rules in areas including property rights protection, industrial subsidies, environmental standards and government procurement.
The country is working on expanding the catalog of encouraged industries for foreign investment, and will release the 2025 edition as soon as possible, Hua said. He noted that the new catalog will include sectors such as advanced manufacturing, modern services, high-tech as well as energy saving and environmental protection.
Zhu said China would further broaden market access by shortening the negative list for investment this year, a move set to benefit all market entities, including foreign companies.
“With these newly-introduced foreign investment policies taking effect, the ‘magnetic appeal’ of the Chinese market to foreign investment will only grow stronger,” he said.
