China steps efforts to adjust foreign investment policy

By John Barbon

TIt seems there are some signs that Chinese government is adjusting its policy in terms of foreign investment amid geopolitical tensions and businesses’ calls for more concrete actions.

On Feb. 19, authorities published a “2025 action plan for stabilizing foreign investment” to make it easier for foreign capital to invest in domestic telecommunication and biotechnology industries.

China is trying yet again to boost foreign investment around the same time the Commerce Ministry disclosed that foreign direct investment in January fell by 13.4% to 97.59 billion yuan ($13.46 billion). That was after FDI plunged by 27.1% in 2024 and dropped by 8% in 2023, after at least eight straight years of annual growth.

FDI comes into China, bringing technology and know-how, creating jobs, revenue and profit, and contributing to tax revenue. But on the flip side, the bigger question remains about China’s resolve to act on the plan.

It seems Chinese government has recognized the vital role foreign companies play in the economy. But further discussions and the steps on the key challenges foreign companies are facing are absolutely needed to ensure a more level playing field for market access in China.

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