China has unveiled a new action plan aimed at boosting foreign investment and further opening up its economy. The plan includes 20 measures to expand the list of industries where foreign investment is encouraged, support reinvestment by foreign-invested enterprises, and facilitate financing.
Experts believe this 2025 action plan underscores the country’s commitment to the international market and its dedication to high-level opening-up.
Pan Yuanyuan, deputy director of the International Investment Department at the Chinese Academy of Social Sciences, emphasized the crucial role that foreign investment has played in the Chinese mainland’s economic growth. She noted that since 2017, the global economic landscape has seen a significant slowdown in foreign direct investment, with a notable decline in global capital inflows. Despite this global trend, Pan highlighted that the Chinese mainland remains committed to expanding opening-up, demonstrating both confidence in the international market and its economic strength.
“This plan sends a strong signal to the world that China is serious about welcoming foreign investors,” Pan said. “It shows our determination to integrate more deeply into the global economy.”
The plan proposes practical measures to stabilize existing foreign investment and attract new inflows. Zhao Fujun, director of the Comprehensive Research Office at the Department of External Economic Research at the State Council’s Development Research Center, believes the implementation of this action plan will play a crucial role in boosting investor confidence and contributing to high-quality development.
“Stabilizing foreign investment is key to maintaining economic momentum,” Zhao stated. “The new measures will not only attract more investors but also enhance the business environment for foreign-invested enterprises.”
The action plan also encourages foreign capital to engage in equity investments in the Chinese mainland and calls for optimizing rules and procedures for foreign investors to conduct mergers and acquisitions.
Zhang Wei, Vice President of the Academy of International Trade and Economic Cooperation at the Ministry of Commerce, highlighted that this move will attract more foreign companies to deepen their investments through acquisitions, promoting higher-level international cooperation between Chinese firms and foreign enterprises.
“By making it easier for foreign investors to participate in our markets, we’re fostering a win-win situation,” Zhang said. “These efforts will lead to more collaboration and shared prosperity.”
In addition, the action plan aims to provide better service guarantees for foreign investment, facilitate the movement of personnel, and ensure more equitable treatment.
“These measures are designed to create a better development environment for foreign-invested enterprises in the Chinese mainland,” Zhang added. “We want them to share in the dividends of our economic growth.”
By the end of 2024, nearly 1.24 million foreign-invested enterprises had been established in the Chinese mainland, with cumulative actual use of foreign investment amounting to 20.6 trillion yuan, contributing nearly 7 percent of employment and one-seventh of tax revenues for the country.
