Guangzhou (JLC), March 20, 2024 – The State Council on March 19 issued an action plan to steadily promote high-level opening-up and intensify efforts to attract and utilize foreign investment.
The action plan contains 5 sections detailing 24 points, including expanding market access, increasing policy and tax support, promoting a level-playing field, supporting data and business personnel exchanges, and aligning domestic rules with high-level international trade rules.
The action plan demonstrates China's determination and efforts to attract foreign investment following recent market concerns over its data on foreign direct investment (FDI).
China's actual utilized foreign investment in 2023, amounting to about CNY1.13 trillion, was still the third-highest in history, despite an 8% year-on-year decline, data from the Ministry of Commerce (MOFCOM) showed.
In fact, China saw a significant increase in the number of newly established foreign-invested enterprises last year, according to data from the MOFCOM, with 53,766 companies being set up nationwide in 2023, representing a year-on-year growth of 39.7%.
Expanding market access
According to the action plan, China will shorten the "negative list" for foreign investment, lift restrictions on foreign companies' access to manufacturing, and promote opening-up in sectors such as telecommunication and medical care.
China will also conduct pilot programs to ease access for foreign investment in science and technology innovation, and allow foreign financial institutions to participate more in banking and insurance.
Meanwhile, efforts will be made to expand the business scope of foreign financial institutions in the domestic bond market. China will conduct pilot investment programs for qualified foreign limited partners in China.
Providing more policy support
Policy support in taxation, finance and energy consumption will be implemented to make the country more attractive to foreign investment, the action plan said.
China will also provide support for foreign enterprises in industry transfers from eastern regions to central, western and northeastern regions.
Ensuring fair competition
To foster a more open, fair and competitive environment for multinationals, the action plan said that efforts will be made to end practices that hinder fair competition and refine the bidding process, ensuring foreign companies can participate in setting standards and join committees on fair terms.
Data flows and people-to-people exchanges
The action plan also highlights initiatives to facilitate smoother data sharing between foreign-invested firms and their global headquarters, alongside simplifying business travel procedures for employees.
Optimizing rules
China will also enhance protection of intellectual property rights, improve rules for cross-border data flows, push forward negotiation and implementation of high-level economic and trade agreements, and intensify pilot programs to align with high-level international trade rules, the document said.
