Tensions have escalated between the two largest economies in the world over the past few years.
Florence Lu Reuters
BEIJING – China is trying once again to enhance foreign investment, amid geopolitical tensions and companies invitations to more concrete measures.
On February 19, the authorities were published 2025 Action plan to install foreign investment To facilitate the investment of foreign capital in the local communications industries and biotechnology, according to the translation of CNBC for the Chinese.
The document required clearer criteria in government purchases – specialization A case for foreign companies In China – to develop a plan to gradually allow foreign investment in the education and culture sectors.
“We look forward to seeing this applied in a way that provides concrete advantages for our members,” Jeans Esclett, President of the European Union Chamber of Commerce in China, said in a statement on Thursday.
The Chamber indicated that China has already mentioned plans to open communications, health care, education and culture for foreign investment. The Chamber said that the greatest clarity about the requirements of public purchases is “noticeable positive”, noting that “if it is fully implemented”, it may benefit foreign companies that have invested greatly to localize their production in China.
The latest action plan was issued in China almost the same time, and the Ministry of Commerce revealed that foreign direct investment in January decreased Pal 13.4 % to 97.59 billion yuan (13.46 billion dollars). This was after 27.1 % foreign direct investment decreased and decreased by 8 % in 2023, after at least eight consecutive years of annual growth, according to the official data available through wind information.
The plan said that all regions must “ensure the implementation of all measures in 2025, and to enhance the confidence of foreign investment effectively.” The National Trade, Development and Reform Committee – the Economic Planning Agency – joint action plan through the executive body of the government, issued the State Council.
Officials from the Ministry of Commerce confirmed in a press conference on Thursday that the action plan will be implemented by the end of 2025, and that the details of the subsequent supporting measures will come soon.
“We appreciate the recognition of the Chinese government of the vital role that foreign companies play in the economy,” Michael Hart, head of the American Chamber of Commerce in China, said in a statement. “We look forward to more discussions about the main challenges our members face and the steps needed to ensure a more level stadium to reach the markets.”
The latest survey of the members of the AMCHAM China, which was released last month, found a standard share Looking or began to diversify Manufacturing or sources away from China. The previous year poll found that the members find it It is difficult to earn money in China By Covid-19.
Consumer spending in China has been dull since the epidemic, as retail sales grow only with low individual numbers in recent months. Meanwhile, tensions escalated with the United States as the White House restricted Chinese access to advanced technology and imposed a customs tariff on Chinese goods.
“Very strong sign”
While many aspects of the action plan were mentioned in general last year, some points-such as allowing foreign companies to buy local shares using local loans-are relatively new.
She also highlighted the invitation of the plan to support the ability of foreign investors to participate in the integration and acquisitions in China, and indicated that she benefits from external lists. Sun's practice covers companies, merging, acquisition and capital markets.
The biggest question is China's intention to act according to the plan.
“This action plan is a very strong sign,” said Sun in Mandarin, translated by CNBC. She said that she expects Beijing to follow, and indicated that his issuance was similar to a rare high -level meeting earlier in the Chinese President Week. Xi Jinping and businessmen.
This gathering included on February 17, the founder of Alibaba Jack MA and Deepseek's Liang Wenfeng. In recent years, organizational repression and uncertainty about future growth has reduced work confidence and the morale of foreign investors.
CITI analysts earlier this month indicated that China needs a balance between definition revenge and the stability of foreign direct investment.
“We believe that policy makers in China are likely to warn us to target us (multinationals) as a form of revenge against the American customs tariff,” analysts said. “Foreign foreign investment comes to China, which brings technology and know -how, creating jobs, revenues and profit, and contributing to tax revenues.”
In a relatively rare recognition, Chinese Ministry of Commerce officials indicated on Thursday the impact of geopolitical tensions on foreign investment, including some companies ’decision to diversify away from China. They also pointed out that foreign investing companies contribute to nearly 7 % of employment and about 14 % of the country's taxes.
previously, An official comment from the Ministry of Commerce About any decrease in foreign direct investment tends to focus only on how most foreign companies appear about long -term horizons in China.
