China rolls out action plan to better utilize foreign investment

To expand market access, enhance investment promotion, and improve foreign capital management, the following strategic measures are recommended based on current policy frameworks and economic trends:

‌1. Expand Market Access through Institutional Opening-up‌

• ‌Implement Negative List Management:‌ Thoroughly implement the negative list system for market access, ensuring that sectors not listed are open to foreign investors. Continue to reduce the number of restricted items, particularly in the manufacturing sector where restrictions have been largely lifted.
• ‌Pilot Service Sector Liberalization:‌ Actively expand pilot programs in high-potential service sectors such as telecommunications, healthcare, biotechnology, and education. Allow wholly foreign-owned hospitals and value-added telecommunications services in designated pilot zones to attract high-quality foreign expertise and capital.
• ‌Ensure National Treatment:‌ Guarantee equal treatment for domestic and foreign-funded enterprises in areas including government procurement, standard-setting, and licensing. Ensure that foreign companies can participate equally in large-scale equipment upgrades and industrial modernization initiatives.

‌2. Enhance Investment Promotion with Precision and Quality‌

• ‌Target High-Tech and Green Industries:‌ Shift focus from traditional low-cost manufacturing to high-tech manufacturing, green energy, and digital economy sectors. Encourage foreign investment in new quality productive forces, such as electric vehicles, artificial intelligence, and carbon neutrality technologies.
• ‌Leverage Major Platforms:‌ Utilize key exhibitions like the Canton Fair and global investment conferences (e.g., Suzhou Global Investment Promotion Conference) to showcase opportunities. Strengthen engagement with Fortune Global 500 companies to secure long-term strategic investments.
• ‌Regional Coordination:‌ Guide foreign investment toward central, western, and northeastern regions by offering tailored incentives and improving infrastructure. Support the relocation of advanced manufacturing industries to these regions to balance regional development.

‌3. Improve Foreign Capital Management and Business Environment‌

• ‌Optimize Financial and Fiscal Support:‌ Implement proactive fiscal policies and precise monetary measures to support foreign-invested enterprises. Provide inclusive financial services, export credit insurance, and tax incentives to ease operational difficulties for small and medium-sized foreign businesses.
• ‌Strengthen Legal and Rights Protection:‌ Strictly enforce the Foreign Investment Law and its implementation regulations. Protect the legitimate rights and interests of foreign investors, including intellectual property rights, to create a market-oriented, law-based, and internationalized business environment.
• ‌Facilitate Cross-Border Mobility:‌ Improve regulations on cross-border travel for professionals working in high-tech and service sectors. Streamline administrative procedures for project approvals and land use to accelerate the launch of major foreign-funded projects.

By integrating these measures, China aims to stabilize foreign investment flows, upgrade the structure of utilized foreign capital, and foster a mutually beneficial ecosystem for global businesses.