CHINA

China Expands Pilot to Liberalize Service Sector Amid Trade Tensions

Published: Apr. 22, 2025 2:07 p.m. GMT+8

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China’s commerce ministry has released a plan to expand a pilot program to further open its service industries across 15 provincial regions, aimed at liberalizing sectors from telecom to healthcare and finance.

“Amid rising global unilateralism and protectionism, China’s accelerated opening of its service sector is practical action to inject more certainty and stability into the world,” Vice Minister of Commerce Ling Ji said at a press conference on Monday.

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China is expanding its service sector pilot program to 15 regions, adding nine new cities, including Shenzhen and Xi'an, to encourage foreign investment in telecom, healthcare, finance, transportation, commerce, and tourism.
Key measures include lifting foreign ownership limits in telecom, allowing foreign doctors to open clinics, supporting cross-border finance, and easing foreign exchange requirements for businesses.
The plan aims to further liberalize services and improve trade and investment convenience amid global protectionism.

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Who’s Who

Multinational Corporations: According to the article, the plan supports multinational corporations by allowing them to use the Chinese yuan for cross-border fund management. This is part of China's broader effort to liberalize its finance sector within the expanded pilot program, aiming to improve convenience for trade and investment and attract more foreign businesses to operate and manage funds more efficiently in China’s service industries.

Foreign-Funded Enterprises: According to the article, the new plan includes measures to improve convenience for foreign-funded enterprises. Specifically, reinvestment by foreign-funded enterprises will be exempted from foreign exchange registration. These steps are part of broader efforts to liberalize China’s service sectors and make it easier for foreign enterprises to invest and operate in the participating pilot regions.

Foreign-Invested Travel Agencies: According to the article, foreign-invested travel agencies will be permitted to operate outbound tourism businesses as part of the expanded pilot program. This liberalization measure aims to further open China's service sector and allow greater participation of foreign companies in China's tourism industry.

Internet Access Providers: According to the article, one of the liberalization measures in the pilot program is the removal of foreign ownership limits for internet access providers. This means foreign investors will be able to have greater participation in China’s internet access services, as part of the broader move to further open the country’s service sector to international players.

App Store Operators: According to the article, China’s expanded pilot program will remove foreign ownership limits for telecommunications services, including App Store operators. This change is part of broader liberalization measures in selected cities, aiming to further open China's service sector to foreign investment and participation.

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