The tensions between the two largest economics world have escalated in recent years.
Florence LO | Reuters
Beijing – China is once again trying to increase foreign investment, in the midst of geopolitical tensions and calls of companies to more specific actions.
19. February Authorities published a “Action Plan 2025. To stabilize foreign investments” In order to make foreign capital more easily invested in the domestic telecommunications and biotechnology industry, according to the CNBC translation of Chinese.
The document required clearer standards in state procurement – main Edition for foreign companies In China – and for the development of a plan gradually allows foreign investment in the education and culture sectors.
“We look forward to doing this in a way that brings tangible benefits for our members,” Jenskelund, president of the European Union of the Union in China, said on Thursday.
The Chamber emphasized that China had already mentioned plans to open telecommunications, health care, education and culture foreign investment. The greater clarity of the requirement of public procurement is “significant positive,” the Chamber said, noting that “if fully implemented” could be used by foreign companies that invested largely in localization of their production in China.
The last Chinese action plan was published at about the same time when the Ministry of Trade revealed that the direct investment was in January in January 13.4% to 97.59 billion yuan ($ 13.46 billion). This was after the FDI fell by 27.1% 2024 and fell by 8% 2023, after at least eight years of annual growth growth, official data available through WIND information.
All regions “should ensure that all measures are implemented in 2025 years and effectively increase confidence in foreign investment,” the plan said. The Ministry of Trade and the National Commission for Development and Reforms – the Economic Planning Agency – has jointly published an action plan through the Government Executive Body, the State Council.
The Ministry of Commerce officials emphasized on Thursday at a press conference that the action plan will be implemented by the end of 2025, and that details of the subsequent support measures will soon appear.
“We appreciate the recognition of the Chinese government on the vital role that foreign companies play in the economy,” Michael Hart, president of the US Chamber of Commerce in China, said in a statement. “We look forward to further discussions about the key challenges that our members and steps are needed to ensure more even conditions for the market access.”
The latest survey of Amcham China’s members, published last month, revealed that a record share Considering or began diversification Production or source away from China. The previous year’s survey revealed that the members found it Harder to make money in China than before the pandemic Coid-19.
Consumer consumption in China has remained uncomfortable with pandemic, and retail sales have only grown low one -core digits in recent months. In the meantime, tensions with the US escalated because the White House limited the Chinese approach to advanced technology and charged tariffs on Chinese goods.
‘Very strong signal’
Although many aspects of the action plan are publicly mentioned last year, some points-they have been allowed to allow foreign companies to buy local shares in the capital using domestic loans-Relatively new, said Xiaojia Sun, a partner based in Beijing in Junha Law.
She also emphasized the invitation of the plan to support the ability of foreign investors to participate in the merger and acquisitions in China, and noted that it is potentially used in foreign lists. The solar practice covers corporations, merging and acquisitions and capital markets.
The bigger question remains the determination of China to act on the plan.
“This action plan is a very strong signal,” Sun told Mandarini, translated by CNBC. She said she expects Beijing to follow with implementation and noted that his release is a similar, high -profile meeting earlier in the Chinese President Week XI jinping and entrepreneurs.
This gathering on February 17th included the founder of Alibaba Jack Ma and Deepseek’s Liang Weenfeng. In recent years, regulatory actions and uncertainty about future growth have dimmed business trust and foreign feelings of foreign investors.
China must establish a balance between the retaliation of the tariff and the stabilization of direct foreign investments, Cita analysts said earlier this month.
“We believe the Chinese creators of politics are probably cautious in targeting us [multinationals] As a form of retaliation against US tariffs, “analysts said.” FDI comes to China, bringing technology and knowledge, creating jobs, income and profit and contributing to tax revenues. ”
In a relatively rare recognition, the ministry of the Ministry of Chinese trade on Thursday noticed the impact of geopolitical tensions on foreign investment, including the decision of some companies to diversify from China. They also pointed out that companies invested abroad contribute to almost 7% of employment and about 14% of the country in the country.
Previously, The official comment on the Ministry of Trade He usually only focused on any FDI drop on that most foreign companies remained optimistic about long-term prospects in China.
