China unveils action plan to better utilize foreign investment

China's commerce ministry, alongside other government departments, released an action plan on Monday to stabilize and optimize foreign investment utilization.

The action plan details 15 measures to be taken across five areas, which include expanding market access, facilitating investment procedures, enhancing investment promotion, strengthening services and guarantees for foreign investment, and improving foreign capital management.

The plan prioritizes expanding market access in services, finance and pharmaceuticals, among other sectors, while streamlining processes for cross-border mergers and acquisitions, data flows, and domestic reinvestment by foreign firms.

It also outlines concrete measures to promote the "Invest China" initiative and fully ensure national treatment for foreign-funded enterprises.

With manufacturing access restrictions now fully lifted, the action plan focuses on services, targeting broader market access in fields including education, finance and healthcare.

To further open the service sector, the plan adds pilot programs in vocational training, schools and high-level universities, while allowing more foreign financial institutions to manage risks via treasury bond futures and conduct fund investment advisory services, according to Ling Ji, vice minister of commerce and deputy China international trade representative.

The plan fully implements national treatment for foreign-funded firms, addressing their concerns over equal participation in government procurement and fair access to business operations, while also supporting them in the country's pro-consumption initiatives such as consumer goods trade-in programs and tax refunds for overseas shoppers.

Jing Qin, an official with the National Development and Reform Commission, said the commission will focus on institutional opening up, gradually expand access to China's commodity and service markets, and align rules and regulations with international standards in areas including intellectual property protection, government procurement and finance.

(Xinhua)