1. Chinese Premier Li Qiang stated at the Summer Davos Forum that China's door will open wider, with further market access and national treatment for foreign enterprises [para. 1]. This was followed by a joint action plan from the Ministry of Commerce and other agencies, outlining 15 measures across five fronts including expanding market access and enhancing foreign investment facilitation [para. 2]. These moves underscore the government's resolve to stabilize foreign investor expectations by steadying existing FDI stock and expanding new inflows [para. 3].
2. Over the past four decades, FDI has been pivotal to China's economy, surging from $920 million in 1983 to $163.3 billion in 2023—a 176-fold increase [para. 4]. Foreign-invested enterprises have driven employment and tax revenues, contributing around 2.5 trillion yuan ($370 billion) annually during the 14th Five-Year Plan period, accounting for roughly one-seventh of national tax revenue, and providing jobs for over 30 million people each year [para. 5][para. 6]. Despite recent external headwinds such as sluggish global growth and geopolitical conflicts, existing foreign capital stock remains largely unaffected [para. 7].
3. To secure and optimize foreign capital, China must deepen service sector opening, particularly in education, healthcare, and finance [para. 9]. The service sector is the largest contributor to GDP and employment, but faces shortcomings in high-quality development [para. 10]. The new action plan proposes pilot programs for vocational training, STEM universities, and supports upgrading the National Comprehensive Demonstration Zone in Beijing, as well as expanding service sector opening to Hong Kong and Macao [para. 11][para. 12]. Financial sector opening and foreign participation in pharmaceuticals are also outlined [para. 13].
4. Healthcare is a critical segment, with a September 2024 notice proposing wholly foreign-owned hospitals in nine cities and Hainan [para. 15]. A follow-up pilot work plan detailed investment and operational requirements [para. 16]. The action plan now dictates urgent study of expanding biotechnology and hospital pilot programs, aiming to enrich domestic medical care [para. 17]. Using the service sector as a focal point is essential for high-quality economic development and building a new open economic system [para. 18].
5. Governments must forge a world-class, law-based business environment and foster a pro-foreign investment atmosphere [para. 19]. Technological innovation is another crucial area, with scientific research and technology services now accounting for nearly one-fifth of actual utilized FDI in 2025—a proportion up 3.8 times since 2018 [para. 21][para. 22]. The action plan emphasizes attracting foreign R&D centers, supporting high-level talent introduction, and tax exemptions for scientific supplies [para. 23][para. 24]. These measures will generate development opportunities for both China and foreign enterprises [para. 25].
6. China's capacity to attract foreign capital is highly resilient, as reform and opening-up have consistently overcome obstacles over four decades [para. 26]. Looking ahead, the door will only open wider, with service sector expansion being the essence of high-level opening-up [para. 27].
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