Foreign investors to be given improved access to Chinese markets
China is set to remove barriers for foreign investors and implement pilot schemes to improve access to the Chinese market for global companies in the fields of scientific and technological innovation.
An action plan, released by the General Office of the State Council, China’s Cabinet, also outlined how the country will remove restrictions on foreign participation in the manufacturing sector and continue to increase openness in sectors such as telecommunications and healthcare.
The policy document said foreign financial entities will be granted greater access to the country’s banking and insurance sectors, and the operational scope for foreign financial institutions will be expanded in China’s domestic bond market.
Gao Lingyun, from the Chinese Academy of Social Sciences, said the publication of the action plan indicates that the country is looking to foster sustainable economic growth, technological innovation and stronger global competitiveness.
In it, the government said that it will push forward negotiation and implementation of high-level economic and trade agreements to enhance the country’s appeal to foreign investors, Gao said.
China is facing challenges in attracting foreign investment. The overall pace of global cross-border investment remains slow, with many developing countries and emerging economies competing to relax investment restrictions, thus intensifying the competition for attracting investment.
He added that the adoption of strategies including ‘decoupling’ by some Western countries had made multinational companies wary about their investment choices, thereby creating challenges for China in its quest to attract foreign capital.
Cui Fan, a professor at the University of International Business and Economics in Beijing, said that “accelerating the establishment of a new development pattern and enhancing the level of foreign investment are crucial”.
Cui said: “The key is to enhance the attractiveness of China’s vast market to global investors and optimize the environment for foreign investment.” He added that as China continues to implement policies for economic openness, global companies have already found new growth opportunities in areas like high-end manufacturing, digital transformation and decarbonization.
Stephen Lewis, president and CEO for Asia-Pacific region at Voith Hydro, a German hydroelectric equipment manufacturer, told the China Daily website that the country’s economy is shifting toward high-quality development, and there is surging demand for sustainable green technologies, including renewable energy.
“This shift brings a new impetus for global companies, and we look forward to leveraging this opportunity to continue contributing to China’s ecological environment quality,” said Lewis.
The website also quoted Sally Loh, president of the China unit of Otis Worldwide Corp, a US manufacturer, who said the company will continue to invest in future technologies in China with a focus on safety and sustainability to serve domestic and international markets.
To foster a more open, fair and competitive environment for multinational corporations, 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 under equitable conditions.
The new policy also highlights initiatives to facilitate smoother data sharing between foreign-invested firms and their global headquarters, alongside simplifying business travel procedures for employees, in addition to broadening the range of industries and projects that welcome foreign investment.
Rural areas to benefit from e-commerce initiative
China has issued guidelines on how to speed the development of e-commerce in rural areas, according to the Ministry of Commerce (MOC).
The guideline was jointly issued by nine departments, including the MOC and the Cyberspace Administration of China.
“The move aims to ride the emerging digital economy wave to establish a new development pattern and improve rural consumption and the income of rural residents,” the MOC said.
The guideline proposes 14 detailed policies in six areas, including building a multi-level rural e-commerce comprehensive service platform, accelerating the construction of a modern logistics and distribution system, and fostering diversified e-commerce entities in rural areas. The MOC said it will also help facilitate construction of live streaming e-commerce hubs.
