mk 2025 Photo: VCG" src="https://www.globaltimes.cn/Portals/0/attachment/2025/2025-02-09/378ba94a-3af9-49b0-aa94-bfd75f707ceb.jpeg" />

A view of Lujiazui in Shanghai on January 27, 2025 Photo: VCG

China on Wednesday unveiled a new action plan to stabilize foreign investment, with 20 specific measures in four aspects, including further expanding market access in various sectors and increasing efforts to promote investment. 

The action plan was devised by the Ministry of Commerce (MOFCOM) and the National Development and Reform Commission, according to a notice issued by the General Office of the State Council on Wednesday.

Among the measures, the plan will encourage foreign companies to make equity investment in China and guide high-quality foreign capital toward long-term investment in China's publicly listed companies. 

China will allow foreign investment companies to utilize domestic loans for equity investment by removing restrictions, encourage multinational corporations to establish investment companies, and make it easier for foreign investors to conduct mergers and acquisitions in China, according to the plan.

These measures will broaden the channels for foreign investment, increase flexibility, and support larger-scale investment in the country, according to some experts.

The relaxation of foreign investment restrictions aligns with China's continuous effort to promote high-level opening-up, Xi Junyang, a professor at Shanghai University of Finance and Economics, told the Global Times on Wednesday.

Xi noted that the measures regarding equity investment in China offer significant untapped potential. "Compared with the traditional investment methods, such as establishing joint ventures in China, equity investment provides greater flexibility, enabling foreign investors to participate more comprehensively and at a larger scale in China's growing economy," Xi explained.

Despite hedge funds increasing their holdings in Chinese stocks to the highest level in a year, the current levels remain relatively low by historical standards, said Morgan Stanley in a prime brokerage note, according to a Reuters report on Wednesday. 

Experts believe that there is still substantial room for growth in foreign investment, especially as China's technology sector continues to thrive and new opportunities for investment emerge. 

Improved investment conditions and China's rapid economic development continue to make the country an attractive destination for foreign capital, said Xi.

To further expand market access for foreign investment, the new action plan also called for expanding pilot programs in sectors such as telecommunications, healthcare and education, and increasing the scope of industries eligible for foreign investment. The plan also stressed that in sectors not covered by the negative list, foreign companies will be subject to the same regulatory standards as domestic firms.

The new action plan not only supports China's economic development, but also underscores its commitment to globalization, as China's openness will facilitate global investment, which is essential for global economic growth, Bian Yongzu, executive deputy editor-in-chief of Modernization of Management magazine, told the Global Times on Wednesday.

Foreign investment in China has shown improving signs. In January, China's actual use of foreign direct investment (FDI) reached 97.59 billion yuan ($13.4 billion), down 13.4 percent year-on-year but up 27.5 percent from the previous month, data from the MOFCOM showed on Wednesday.

Meanwhile, actual use of FDI in the high-tech manufacturing sector totaled 12.24 billion yuan, accounting for 12.5 percent of total FDI, up 0.8 percentage point from that of 2024. In terms of sources of FDI, those from the UK jumped by 324.4 percent, and those from South Korea soared 104.3 percent, according to the data.

Chinese officials have also encouraged foreign companies to invest and develop in China. On Wednesday, Ling Ji, vice minister of commerce, met with Lucian Boldea, president and CEO of Honeywell Industrial Automation. Ling highlighted China's strong economic resilience, innovation and efficient supply chains as key factors supporting multinational companies' long-term, stable growth in the country. He welcomed Honeywell's continued investment in smart manufacturing and green low-carbon sectors, the MOFCOM said in a statement. 

Boldea expressed Honeywell's confidence in the Chinese market, emphasizing the company's 40-year presence in China. Despite external uncertainties, he stated that Honeywell is committed to increasing research and development investment and participating in China's green transition, providing high-quality products and services to the Chinese market, according to the MOFCOM statement.