1 / 12On February 19, China unveiled its 2025 Action Plan for Stabilizing Foreign Investment, aiming to revive investor confidence. Approved at a State Council meeting, the plan focuses on economic modernization and greater foreign participation in key sectors like biotechnology, telecommunications, education, and healthcare, according to China Briefing. Here are the key measures designed to attract foreign investment:
2 / 12Expansion of pilot programmes to boost foreign investment | Beijing plans to expand pilot programmes in sectors like telecom, healthcare and education to attract FDI. Pilot regions implementing policies in value-added telecom, biotechnology, and foreign-owned hospitals will be granted support by the government. The ‘special class’ tracking services will also be offered by the government for foreign investment projects in these areas. The further expansion of telecom and healthcare pilot programmes is also part of the strategy, whereas structured plans for gradual growth in areas like education and culture are also considered.
3 / 12Lifting curbs on foreign investment in manufacturing | Under this plan, the Xi administration has vowed to remove curbs on foreign investment in manufacturing, ensuring ‘equal treatment’ for domestic as well as foreign investors. Based on this principle, the revised policy will fully lift the restrictions and allow foreign investment inflow. Additionally, focus will also be given in offering larger market access to business entities.
4 / 12Promoting service sector openness through pilot demonstrations | The country also plans to optimise its national service industry pilot demonstrations, with Beijing’s demonstration zone taking the lead in expanding service sector openness. By introducing new tasks and focusing on key areas for testing, the scope for these pilot programmes will be broadened. The government also plans to study and replicate successful policies and measures from these programmes.
5 / 12Opening up biopharmaceutical sector to foreign investment | China is promoting the orderly opening of the biopharmaceutical field by supporting qualified foreign enterprises in participating in specialised production trials for biological products. While optimising resource allocation to resolve challenges companies face during trials, the state administration will accelerate reviewing provincial pilot programmes and quality supervision plans. Moreover, the plan also aims to improve policies in the pharmaceutical sector.
6 / 12Strategic measures to boost foreign equity | Beijing aims to encourage foreign equity investment by employing the ‘Measures for the Administration of Strategic Investment by Foreign Investors in Listed Companies’. With the primary focus on attracting long-term foreign investment in listed companies, operational guidelines will be issued to facilitate strategic investments.
7 / 12Bolstering ‘Invest in China’ brand | Strengthening the ‘Invest in China’ brand by employing reforms to promote FDI is one of the goals of the plan. By coordinating with the central and local governments, overseas promotional activities will be conducted. Activating bilateral investment promotion working groups to enhance project matchmaking efforts is a crucial part of the strategy.
8 / 12Easing domestic loan use for foreign firms | The plan to remove restrictions on the utilisation of domestic loans by the foreign investment companies is one of the crucial ideas pitched in the framework. To facilitate establishment of headquarters-like institutions by multinational companies in China, the government aims to promote and clarify policies soon.
9 / 12Simplifying M&A for foreign investors | Under the plan, mergers and acquisitions by foreign investors will be facilitated by revising regulations in the Foreign Investment Law. Simplified rules and procedures for such M&A activity will be put in place. Lowering the threshold for cross-border share swaps is also considered in the framework.
10 / 12Expanding foreign investment in key sectors | Beijing is encouraging investment in key sectors by encouraging foreign investment in livestock breeding, feed, and veterinary drugs. It also plans to offer more market opportunities in areas like elderly care, culture, sports, healthcare, education, and financial services to meet diverse demand.
11 / 12Facilitating personnel movement through visa policy reforms | By accelerating negotiations on visa exemption agreements and expanding unilateral visa exemptions, the Chinese administration is also determined to facilitate the movement of the personnels. To ease the cross-border movement, the government will optimise visa policies at ports, including transit and regional entry visa exemptions. Moreover, ‘The Guide for Foreign Business Personnel Working and Living in China’ will be updated.
12 / 12Improving trade facilitation through tariff reductions & inspection reforms | By ensuring the issuance of certificates of origin under preferential trade agreements, China attempts to enable tariff reductions from partner countries. 2025 action plan for stabilising foreign investment also plans provisions to increase the number of foreign companies recognised as ‘Authorised Economic Operators (AEO), with extremely low inspection rates for AEOs. Additionally, more qualified domestic and foreign inspection agencies will be accepted for the import of goods.
