In a bid to further entice global investors, the Ministry of Commerce of the People’s Republic of China has recently announced its consideration of relaxing foreign ownership restrictions. This move aligns with China’s ongoing efforts to foster a more welcoming business environment for international companies. Ministry spokesperson He Yadong shared these intentions during a press conference, emphasizing the government’s determination to enhance its services for foreign enterprises.
The focal point of these efforts is the periodic review and revision of the nation’s “negative list” for foreign investment. Over the past five years, China has consistently trimmed down this list, thereby reducing barriers to foreign ownership in various sectors. These areas include but are not limited to seed production, automobile manufacturing, vessel and aircraft manufacturing, securities, banking, and insurance. By doing so, China seeks to open its doors wider to foreign investors and stimulate economic growth.
This announcement comes in the wake of a report released by the Development Research Center of the State Council, confirming China’s sustained status as the world’s second-largest recipient of foreign investment since 2017. Moreover, China remains a globally attractive destination for investors.
The statistics reveal China’s continued success in this endeavor. In 2022, the nation’s actual utilization of foreign direct investment (FDI) reached an impressive $189.1 billion, representing an 8 percent year-on-year increase based on a comparable basis. China’s share of global FDI has also experienced notable growth, surging from 8.2 percent in 2012 to 14.6 percent in 2022.
These developments underscore China’s ongoing commitment to fostering an environment that is increasingly conducive to foreign investments. By systematically reducing the negative list and exploring further relaxation of foreign ownership restrictions, the country aims to not only attract more global investors but also create a thriving ecosystem where foreign businesses can prosper. This approach aligns with the broader trends of globalization and international cooperation in the world of commerce, and it is poised to bring mutual benefits to both foreign investors and China’s growing economy.