China's latest action plan shows it's trying to boost foreign investment amid geopolitical tensions

cnbc.com:

BEIJING — China is trying yet again to boost foreign investment, amid geopolitical tensions and businesses' calls for more concrete actions.

On Feb. 19, authorities published a «2025 action plan for stabilizing foreign investment» to make it easier for foreign capital to invest in domestic telecommunication and biotechnology industries, according to a CNBC translation of the Chinese.

The document called for clearer standards in government procurement — a major issue for foreign businesses in China — and for the development of a plan to gradually allow foreign investment in the education and culture sectors.

«We are looking forward to see this implemented in a manner that delivers tangible benefits for our members,» Jens Eskelund, president of the European Union Chamber of Commerce in China, said in a statement Thursday.

The chamber pointed out that China has already mentioned plans to open up telecommunications, health care, education and culture to foreign investment. Greater clarity on public procurement requirements is a «notable positive,» the chamber said, noting that «if fully implemented,» it could benefit foreign companies that have invested heavily to localize their production in China.

China's latest action plan was released around the same time the Commerce Ministry disclosed that foreign direct investment in January fell by 13.4% to 97.59 billion yuan ($13.46 billion). That was after FDI plunged by 27.1% in 2024 and dropped by 8% in 2023, after at least eight straight years of annual growth, according to official data available through Wind Information.

All regions should «ensure that all the measures are implemented in 2025, and effectively boost foreign investment confidence,» the plan said. The Ministry of