From CNBC: 2025-02-23 21:16:37

China is aiming to boost foreign investment amidst escalating tensions with other countries. A new action plan seeks to make it easier for foreign capital to invest in domestic telecommunication and biotechnology industries, with a focus on clearer government procurement standards and opening up more sectors to foreign investment.

The plan comes after a 13.4% drop in foreign direct investment in January, continuing a trend of declining FDI over the past few years. The Ministry of Commerce and National Development and Reform Commission jointly released the action plan, emphasizing its implementation by the end of 2025.

Foreign business chambers in China have welcomed the plan, hoping for tangible benefits and a more level playing field for market access. However, some companies are already diversifying away from China due to challenges faced in the market, such as sluggish consumer spending and escalating tensions with the U.S.

The action plan includes new measures, such as allowing foreign companies to buy local equity stakes using domestic loans and supporting foreign investors in mergers and acquisitions in China. The plan is seen as a strong signal of China’s commitment to boosting foreign investment, amidst concerns about regulatory crackdowns and uncertainty affecting business confidence.

Read more: China strives to attract foreign investment amid geopolitical tensions