China has unveiled a comprehensive plan to boost foreign investment amid a continued decline in inbound capital and increasing global economic uncertainty. The initiative, announced Monday by the Ministry of Commerce, Ministry of Finance, and the National Development and Reform Commission, outlines 15 measures aimed at expanding market access and improving the quality and structure of foreign direct investment (FDI) across key sectors such as services, finance, and healthcare.
The plan proposes greater openness toward foreign firms, including allowing overseas investors to participate in vocational training institutions and top-tier universities specializing in science, engineering, agriculture, and medicine. Investors from Hong Kong and Macau are set to receive earlier and broader access to mainland China’s services market. The government also pledged expanded opportunities within financial services, permitting more foreign institutions to use risk management tools like treasury bond futures and encouraging “key foreign firms” to list on domestic stock exchanges with eased cross-border financing quotas.
The Chinese authorities emphasized the importance of fair treatment for foreign-invested enterprises, particularly in government procurement and tendering processes. The plan mandates full implementation of national treatment policies, ensuring support measures apply equally to these enterprises unless restricted by law or national security concerns. Foreign firms will also be encouraged to engage in government-led campaigns aimed at stimulating consumer spending.
To further attract technology-driven investment, Beijing intends to support the establishment of foreign research and development centers. The action plan highlights regulatory easing in pilot free trade zones and cities, including the development of negative lists covering cross-border data transfers in additional sectors. Tax incentives will also be offered to overseas investors who reinvest distributed profits directly in China.
In the pharmaceutical and healthcare industries, the plan seeks to expand pilot programs allowing foreign investment in biotechnology and wholly foreign-owned hospitals. These initiatives currently operate in eight cities, including Shanghai, Beijing, Guangzhou, Shenzhen, and Hainan province.
Despite the comprehensive scope of the plan, experts have noted a lack of detailed implementation guidance. Tang Dajie, a senior researcher at the China Enterprise Institute, described the announcement as encouraging but highlighted the need for concrete, measurable actions. He also pointed out new provisions requiring local governments to honor policy commitments, a response to past instances where local officials had failed to uphold promises made to foreign investors.
China’s efforts come amid a multi-year decline in FDI inflows, with total investment reaching 287.6 billion yuan (approximately US$42.5 billion) in the first four months of 2026—a 10.3 percent decrease compared to the same period last year. However, investment from the United States bucked the trend, rising 24.5 percent year-on-year during this timeframe.
The new measures reflect Beijing’s ongoing commitment to “high-level opening up,” consistent with recent calls by President Xi Jinping and other senior officials to enhance foreign investor confidence and participation in China’s markets.