China issues policy to stabilize foreign investment
China’s Ministry of Commerce (MoC）and National Development and Reform Commission (NDRC）released a document titled “2025 Action Plan for Stabilizing Foreign Investment” (2025年稳外资行动方案) on Feb. 19.
In a recent interview with CMG on related Chinese department officials and research institute scholars, they explained that “At present, the global economy is facing a more complex situation, with the voices of isolationism and protectionism on the rise. The Action Plan deeply understands the practical demands of foreign enterprises. It formulates clear and specific measures in response to the core concerns of foreign enterprises such as equity investment and cross-border mergers and acquisitions, demonstrating the Chinese government's firm determination to expand high-level opening-up continuously. "
In 2024, 59,080 new foreign-invested enterprises were established in China, up 9.9 percent year on year. China attracted an annual overseas investment of over 1 trillion yuan (about 139.5 billion U.S. dollars) for three consecutive years from 2021 to 2023.
As there’s no obvious drop in foreign investments in China, so the main purpose of the action plan should be to countermeasure “the rise of isolationism and protectionism” in the world.
The action plan includes the following parts:
I. Expand Independent Opening-up in an Orderly Manner
(有序扩大自主开放)
(1) Expand opening-up pilots in sectors such as telecommunications, healthcare, and education. Support pilot areas in implementing and publicizing policies for opening-up pilots in value-added telecommunications, biotechnology, and wholly-foreign-owned hospitals. Provide "special-team" follow-up services for foreign-invested projects in related sectors, promptly coordinate and solve problems, and promote the early implementation of projects. Expand the opening-up pilots in the telecommunications and healthcare sectors in a timely manner. Study and formulate implementation plans for the orderly expansion of autonomous opening-up in the education and culture sectors, and announce and steadily implement them in due course.
(扩大电信、医疗、教育等领域开放试点。支持试点地区抓好增值电信、生物技术、外商独资医院领域开放试点政策宣贯落实，对相关领域外商洽谈项目开展“专班式”跟踪服务，及时协调解决问题，推动项目尽早落地。适时进一步扩大电信、医疗领域开放试点。研究制定有序扩大教育、文化领域自主开放实施方案，适时对外公布并稳步实施。)
(2) Implement the requirement of completely removing restrictions on foreign investment access in the manufacturing sector. For sectors outside the negative list of foreign investment access, manage foreign investment access in strict accordance with the principle of treating domestic and foreign investment equally. Revise the negative list of market access, further reduce the items on the list, and expand opening - up to all types of business entities.
(落实全面取消制造业领域外资准入限制要求。对于外资准入负面清单之外的领域，严格按照内外资一致的原则对外资准入实施管理。修订市场准入负面清单，进一步压减清单事项，面向各类经营主体扩大开放。)
(3) Optimize the comprehensive pilot demonstration of expanding the opening-up of the service industry at the national level. Support the demonstration area in Beijing to play a leading role in expanding the opening-up of the service industry and accelerate the progress of the pilot work. Further expand the scope of the pilot projects, assign new content and tasks to the pilot projects, and prioritize the implementation of opening-up measures in key sectors in the pilot demonstration areas. Conduct in-depth research on policies and measures for expanding the opening-up of the service industry, closely monitor the progress of the pilot, and promptly replicate and promote the pilot experience. Support the comprehensive pilot demonstration areas for expanding the opening-up of the service industry at the national level in carrying out standardization construction.
(优化国家服务业扩大开放综合试点示范。支持北京示范区发挥服务业扩大开放引领作用，推动试点工作提速加力。进一步扩大试点范围，赋予试点新内容新任务，重点领域开放举措优先在试点示范地区试验。深入研究服务业扩大开放政策举措，密切关注试点推进情况，及时复制推广试点经验。支持国家服务业扩大开放综合试点示范地区开展标准化建设。)
(4) Promote the orderly opening - up of the biomedical sector. Support eligible foreign - invested enterprises to participate in the pilot of segmented production of biological products, accelerate the review of provincial-level pilot plans and quality supervision plans, promote the optimization of resource allocation in the biomedical industry, and promptly coordinate and solve difficulties and problems encountered by enterprises during the pilot process. Study and improve the opening-up policies in the medical field, facilitate the accelerated listing of innovative drugs, optimize the volume-based procurement of drugs, and further improve the predictability of the procurement of medical device products.
(推动生物医药领域有序开放。支持符合条件的外资企业参与生物制品分段生产试点，加快省级试点方案、质量监管方案审核，推动生物医药产业优化资源配置，及时协调解决试点过程中企业遇到的困难问题。研究完善医药领域开放政策，便利创新药加快上市，优化药品带量采购，进一步提高医疗器械产品采购可预期性。)
(5) Encourage foreign-invested enterprises to conduct equity investment in China. Implement the Measures for Strategic Investment in Listed Companies by Foreign Investors, formulate and issue operation guidelines for strategic investment, increase publicity and promotion efforts to listed companies, overseas funds, and investment institutions, etc., and guide more high-quality foreign investment to make long-term investments in Chinese listed companies.
(鼓励外资在华开展股权投资。抓好《外国投资者对上市公司战略投资管理办法》落实，制定发布实施战略投资的操作指引，加大对上市公司、境外基金和投资机构等的宣介力度，引导更多优质外资长期投资我国上市公司。)
II. Improve the Level of Investment Promotion
(提高投资促进水平)
(6) Continuously build the "Invest in China" brand. Implement the requirements for deepening the reform of the foreign investment promotion system and mechanism, formulate an annual implementation plan for building the "Invest in China" brand, and carefully design and implement a series of "Invest in China" activities. Coordinate and link efforts between the central and local governments, carry out overseas investment promotion activities, and make better use of foreign investment to strengthen and supplement the manufacturing industry chain. Based on the different characteristics of major sources of investment in China, study and formulate differentiated investment-attraction goals and strategies, closely cooperate with the mechanism of the bilateral economic and trade joint committee (mixed committee), fully activate the mechanism of the bilateral investment promotion working group, and increase the intensity of project matching and docking.
(持续打造“投资中国”品牌。落实深化外商投资促进体制机制改革要求，制定打造“投资中国”品牌年度实施方案，精心设计实施“投资中国”系列活动。央地协同联动，开展境外投资促进活动，更好利用外资推进制造业补链强链。针对我主要投资来源地不同特点，研究制定差异化引资目标和策略，与双边经贸联委会（混委会）机制密切配合，全面激活双边投资促进工作组机制，加大项目撮合对接力度。)
(7) Increase support for the reinvestment of foreign-invested enterprises in China. Continuously optimize the business environment and effectively implement the national treatment of foreign-invested enterprises. Study and formulate policies and measures to encourage the reinvestment of foreign-invested enterprises in China, and promote foreign-invested enterprises to use more of their profits obtained in China for reinvestment. Carry out a pilot program for reporting information on the domestic investment of foreign-invested enterprises.
(加大外资企业境内再投资支持力度。持续优化营商环境，切实把外资企业的国民待遇落实到位。研究制定鼓励外资企业境内再投资政策措施，促进外资企业在华所获利润更多用于再投资。开展外资企业境内投资信息报告试点。)
(8) Expand the scope of industries that encourage foreign investment. Revise and expand the Catalogue of Industries Encouraging Foreign Investment, optimize the structure of foreign investment, promote foreign investment to serve the high-quality development of China's manufacturing industry, guide foreign investment to flow into the modern service industry, and support foreign investment to flow more into the central, western, and northeastern regions.
(扩大鼓励外商投资产业范围。修订扩大鼓励外商投资产业目录，优化外商投资结构，促进外资服务我国制造业高质量发展，引导外资投向现代服务业，支持外资更多投向中西部和东北地区。)
(9) Remove restrictions on the use of domestic loans by foreign-invested holding companies. Allow foreign-invested holding companies to use domestic loans to carry out equity investment, increase the intensity of policy publicity and interpretation, and provide convenience for multinational companies to invest and establish headquarters - type institutions in China.
(取消外商投资性公司使用境内贷款限制。允许外商投资性公司使用境内贷款开展股权投资，加大政策宣传解读力度，为跨国公司在华投资设立总部型机构提供便利。)
(10) Encourage multinational companies to invest and establish investment-holding companies. Optimize the relevant regulations for foreign-invested enterprises to establish investment-holding companies, and provide convenience for multinational companies to invest and establish investment-holding companies in aspects such as foreign exchange management, entry and exit of personnel, and cross-border data flow. Ensure that enterprises established in China through the investment of relevant foreign-invested holding companies enjoy the treatment of foreign-invested enterprises in accordance with laws and regulations.
(鼓励跨国公司投资设立投资性公司。优化外商投资举办投资性公司相关规定，在外汇管理、人员出入境、数据跨境流动等方面，为跨国公司投资设立投资性公司提供便利。保障相关外商投资性公司在华投资设立的企业依法依规享受外资企业待遇。)
(11) Facilitate foreign investors to conduct merger and acquisition (M&A) investments in China. Under the framework of the Foreign Investment Law, revise the Provisions on the Merger and Acquisition of Domestic Enterprises by Foreign Investors, optimize the rules and procedures for foreign-invested M&A transactions, improve the scope of M&A management, and lower the threshold for cross-border share - swap, etc.
(便利外国投资者在华实施并购投资。在外商投资法框架下，修订《关于外国投资者并购境内企业的规定》，优化外资并购规则和并购交易程序，完善并购管理范围，降低跨境换股门槛等。)
(12) Increase the intensity of attracting investment in key sectors. Encourage foreign investment in livestock-related sectors such as breeding, feeding equipment production, and feed and veterinary drug production, and grant them national treatment. Support foreign-invested enterprises to participate in China's new industrialization process, focus on attracting foreign investment in high-tech fields and provide foreign-invested enterprises with more market opportunities and cooperation space. Encourage the service sectors such as elderly care services, culture and tourism, sports, healthcare, vocational education, and finance to attract and utilize foreign investment to meet the needs of multi-level service consumption.
(加大重点领域引资力度。鼓励外商投资养殖、饲养设备生产、饲料兽药生产等畜牧业相关领域并享受国民待遇。支持外资企业参与我国新型工业化进程，重点引进高技术领域外商投资，为外资企业提供更多市场机会和合作空间。鼓励养老服务、文化和旅游、体育、医疗、职业教育、金融等服务业领域吸引利用外资，满足多层次服务消费需求。)
(13) Strengthen the external publicity of economic policies and the business environment. Make full use of methods such as press releases, briefings, interviews, and expert interpretations to actively publicize and explain China's new policies, new measures, and new highlights in expanding high-level opening up.
加强经济政策和营商环境对外宣介。充分运用新闻发布、吹风会、接受采访、专家解读等方式，对外积极宣传阐释我国扩大高水平对外开放的新政策新举措新亮点。
III. Enhance the Efficiency of Open Platforms
(增强开放平台效能)
(14) Deepen the reform of the management system of development zones. Improve the policy support system, formulate policy documents for deepening the reform and innovation of national-level economic and technological development zones, introduce new measures in aspects such as factor guarantee, opening - up in key sectors, undertaking reform pilot tasks, and delegating economic management authority, and enhance the level of export-oriented economic development of national-level economic and technological development zones. Promote national-level high-tech zones, special customs supervision areas, and various provincial-level development zones to play a role in stabilizing foreign investment as platforms for opening up.
(深化开发区管理制度改革。完善政策支撑体系，制定深化国家级经济技术开发区改革创新的政策文件，在要素保障、重点领域开放、承担改革试点任务、经济管理权限下放等方面出台新举措，提升国家级经济技术开发区外向型经济发展水平。推动国家级高新区、海关特殊监管区域及各类省级开发区等作为对外开放平台发挥稳外资作用。)
(15) Implement the strategy of upgrading free trade pilot zones. Promote the improvement of the quality and efficiency of free trade pilot zones, expand the authorization of reform tasks, accelerate the implementation of the core policies of the Hainan Free Trade Port, and create a high - ground for attracting foreign investment. Support free trade pilot zones to increase pressure testing in the field of foreign investment access, and continuously expand institutional opening-up in terms of rules, regulations, management, and standards.
(实施自由贸易试验区提升战略。推动自由贸易试验区提质增效，扩大改革任务授权，加快推进海南自由贸易港核心政策落地，打造吸引外商投资高地。支持自由贸易试验区在外资准入领域加大压力测试，持续扩大规则、规制、管理、标准等制度型开放。)
IV. Increase the Intensity of Service and Guarantee
(加大服务保障力度)
(16) Promote the implementation of major foreign-invested projects. Support the inclusion of more foreign-invested projects in the lists of major foreign-invested projects, increase policy support and service guarantee efforts, and accelerate the implementation and construction of projects.
(推动重大和重点外资项目落地。支持将更多外资项目纳入重大外资项目和重点外资项目清单，加大政策支持和服务保障力度，加快推动项目落地建设。)
(17) Establish a standard system for government procurement of domestic products. Promptly formulate and issue relevant documents, clarify the standards for government procurement of domestic products, and ensure that products produced in China by enterprises of different ownerships participate equally in government procurement activities. Strengthen the publicity of policies in the field of government procurement and handle complaints from foreign-invested enterprises well.
(建立政府采购本国产品标准体系。尽快制定出台相关文件，明确政府采购本国产品标准，确保不同所有制企业在中国境内生产的产品平等参与政府采购活动。加强政府采购领域政策宣传，做好外资企业投诉处理工作。)
(18) Broaden the financing channels of foreign-invested enterprises. Encourage financial institutions to provide financing services for foreign-invested enterprises, conduct research on the loan needs and investment and operation situations of key foreign-invested enterprises, and conduct targeted bank-enterprise docking activities. Guide various types of funds to carry out equity investment cooperation with foreign-invested enterprises, and support foreign-invested enterprises in China to expand their investment and operation scale and deepen their presence in the Chinese market.
(拓宽外资企业融资渠道。鼓励金融机构为外资企业提供融资服务，开展重点外资企业贷款需求及投资经营情况调研，有针对性举办银企对接活动。引导各类基金与外资企业开展股权投资合作，支持在华外资企业扩大投资经营规模、深耕中国市场。)
(19) Facilitate the facilitation of personnel exchanges. Accelerate the negotiation of visa-exemption agreements, and continue to steadily expand the scope of countries with unilateral visa-exemption. Optimize policies such as port visas, transit visa - exemption, and regional entry visa - exemption to promote cross-border personnel flow. Update the Guidelines for Foreign Business People Working and Living in China.
(促进人员往来便利化。加快互免签证协定商谈，继续稳妥扩大单方面免签国家范围。优化口岸签证、过境免签、区域性入境免签政策，促进人员跨境流动。更新《外国商务人士在华工作生活指引》。)
(20) Improve the trade facilitation level of foreign-invested enterprises. Do a good job in the visa-issuing of certificates of origin under preferential trade agreements, and help foreign-invested enterprises' export goods enjoy tariff concessions from partner countries. Optimize the inspection and supervision of imported complete sets of equipment for key foreign-invested projects. Increase efforts to cultivate "Authorized Economic Operators" (AEO) of foreign-invested enterprises in the customs, and further optimize and reduce the random inspection rate of AEO. Actively and steadily promote the accreditation of imported products, and include more qualified Chinese and foreign inspection institutions in the list of accredited institutions. Encourage foreign-invested enterprises to file for intellectual property rights, and resolutely crack down on the infringement of intellectual property rights of foreign-invested enterprises in the import and export process.
(提升外资企业贸易便利化水平。做好优惠贸易协定项下原产地证书签证工作，助力外资企业出口货物享受协定伙伴方关税减让。优化重点外资项目进口成套设备检验监管。加大对外资企业海关“经认证的经营者”（AEO）培育力度，进一步优化降低AEO随机布控查验率。积极稳妥推进进口商品采信，将更多符合资质的中外检验机构纳入采信机构目录。鼓励外资企业开展知识产权备案，坚决打击进出口环节侵犯外资企业知识产权的行为。)
The action plan requires all measures are implemented and effective within 2025.