BEIJING (Reuters) – The Chinese government unveiled new measures on Tuesday aimed at stemming a slowdown in foreign investment, including expanding access to its market and easing some regulations.
Since Beijing abandoned its ultra-strict policies to combat COVID-19 at the end of 2022, a certain distrust has set in among foreign companies regarding the business environment, prospects for economic recovery and the Chinese political climate.
In an action plan, the State Council, led by Premier Li Qiang, said it would narrow the list of sectors in which foreign investors’ activities are restricted or prohibited, with the aim of attracting foreign companies by launching pilot projects focused on science and technological innovation.
China will also expand foreign financial institutions’ access to the banking and insurance sectors and increase the scope of their participation in the domestic bond market, according to the detailed plan released by the official Xinhua News Agency.
“Foreign investment is an important force to participate in China’s modernization and promote the common prosperity and development of the Chinese economy and the world economy,” the government said in the plan.
Foreign investment fell 11.7% in January from a year earlier to 112.71 billion yuan (14.42 billion euros), according to the latest Chinese data.
In 2023, foreign direct investment in China fell by 8% year-on-year.
(Reporting by Albee Zhang and Kevin Yao; Dimitri Rhdoes, editing by Blandine Hénault)
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