Amid intensifying global economic pressure and trade protectionism, China is expanding its high-standard opening-up strategy to reassure multinational investors and optimize foreign direct investment (FDI).

Nearly 4,800 foreign-invested enterprises expanded their presence in China during the first half of 2026, with capital flows tilting heavily toward high-tech industries and research and development. This shift reflects a strategic transition from attracting basic manufacturing capital to bringing in global innovation and resource capabilities.

To anchor long-term growth, China’s Ministry of Commerce, National Development and Reform Commission, and Ministry of Finance launched a joint action plan focused on five core pillars: expanding market access, smoothing investment facilitation, sharpening promotion under the “Invest in China” brand, guaranteeing equal services, and streamlining regulatory administration.

Following the full removal of foreign investment restrictions across manufacturing, China is shifting its market-opening momentum toward the modern services sector. The new package addresses key pain points after entry by streamlining cross-border data flows, facilitating domestic reinvestments, improving M&A channels, and ensuring full national treatment for foreign firms.

Rather than relying on short-term incentives, Beijing aims to build a predictable, fair, and transparent institutional environment—positioning its vast market as a durable hub for global business.

Source: People’s Daily