A view of Lujiazui, Shanghai Photo: VCG

China's Ministry of Commerce (MOFCOM), the National Development and Reform Commission (NDRC), and the Ministry of Finance (MOF) jointly issued a notice on Monday outlining an action plan to stabilize and improve the utilization of foreign investment.

The move sent a positive signal to foreign businesses, once again reflecting China's determination to provide an open and fair market environment for all companies, including foreign enterprises. A Chinese expert noted that key areas such as finance, pharmaceuticals, and the digital economy are among the highlights of the plan.  

Some representatives of foreign business community in China welcomed the notice as a positive signal for foreign businesses operating in the country, when contacted by the Global Times on Monday.

Introducing the initiative for the action plan at a press conference held by the State Council Information Office on Monday, Ling Ji, vice minister of commerce and deputy China international trade representative, said that to build new advantages in attracting foreign investment during the 15th Five-Year Plan (2026-30) period, we worked together with 27 government departments, including the NDRC and the MOF, focusing on common concerns raised by foreign-invested enterprises. 

Several measures were highlighted in the action plan.

In terms of expanding market access, China will further deepen the opening-up of the services sector. For example, it will steadily expand pilot programs allowing foreign participation in vocational skills training institutions, vocational colleges, and high-level universities in science, engineering, agriculture, and medicine.

Efforts will also be made to improve the openness of the financial services sector, including supporting more foreign-funded institutions in using risk management tools such as treasury futures, and strengthening financial risk management capabilities.

In addition, foreign investors will be encouraged to participate in the high-quality development of industries such as pharmaceuticals. Measures include further expanding pilot programs for opening up biotechnology and wholly foreign-owned hospitals to a wider range of regions.

To strengthen the service and support system, the government vows to fully implement national treatment for foreign-invested enterprises and enhance fair competition reviews in areas such as government procurement and bidding processes.

The number of foreign-invested enterprises in China has continued to grow, reaching 533,000 as of the end of 2025. This represented an average annual growth rate of 4.5 percent over the past five years, according to Ling.

In terms of their contribution to China's economy since 2020, during the 14th Five-Year Plan (2021-25) period, foreign-invested enterprises contributed about 2.5 trillion yuan ($370 billion) in tax revenue annually, accounting for approximately one-seventh of the national total, said the vice commerce minister.

Foreign-invested enterprises in China have maintained an important role in taxation, employment, and participation in industrial value chains, Hu Qimu, a professor at the Maritime Silk Road Institute of Huaqiao University, told the Global Times on Monday, noting that "the action plan sends a clear signal of China's continued commitment to high-standard opening-up and to improving the business environment for foreign investors."

Lorenzo Riccardi, chairperson of the Board of the EU SME Centre, which provides a comprehensive range of hands-on support services to European small and medium-sized enterprises (SMEs), getting them ready to do business in China, welcomed the action plan.

He told the Global Times on Monday that "the plan sends a positive policy signal regarding China's continued commitment to improving the business environment for foreign investors."

"The involvement of several key ministries suggests a coordinated approach to enhancing policy consistency and implementation... It is also important to focus on the needs of SMEs, and expatriate managers and professionals, as these groups contribute to innovation, and local economic development," Riccardi said.

"Overall, the plan appears intended to strengthen investor confidence by improving predictability, facilitating operations, and expanding opportunities for long-term cooperation. Its impact will depend on effective implementation at both the national and local levels," he added.

Riccardi said that areas such as advanced manufacturing, healthcare, green technologies, energy transition solutions, digitalization, artificial intelligence (AI), and high-value services are expected to maintain strong growth potential and are in line with the goals of Brussels and individual European countries.

Loh Wee Keng, chairperson of the Malaysian Chamber of Commerce and Industry in China, told the Global Times on Monday that these three government departments can be regarded as the most important central government agencies in charge of China's economy. 

"From this, we can see that the strength and determination behind this initiative are at the highest level, which will undoubtedly provide foreign investors with a strong sense of reassurance," said Loh.

"I also hope that this initiative will not only focus on policy liberalization, improved regulation, and more reliable services, but also extend to supporting services for foreign professionals such as greater convenience for accompanying family members and improvements in the quality of life outside of work," he said.