China poised to open up further

China will continue to relax market access, expand institutional openness and foster a more enabling business climate, in order to better attract and utilize foreign investment, especially in the face of rising global protectionism and escalating geopolitical tensions, officials and experts said on Wednesday.

As persistent economic headwinds have dampened the confidence of global investors, China's supersized market, coupled with its robust manufacturing capabilities and extensive supply chain networks, has become a major draw for foreign companies looking to expand their global footprint, they said.

Addressing a news conference, Li Yongjie, deputy international trade representative of the Ministry of Commerce, said, "China will further open up its services sector, with a particular focus on accelerating pilot programs in key areas such as telecommunications, healthcare and education."

China has been revising its list of sectors in order to encourage foreign investment, Li said, noting that such measures, coupled with the removal of all market access restrictions for foreign investors in the manufacturing sector last year, signal the country's proactive stance toward openness.

The country is committed to aligning itself with high-standard international trade and economic rules, while building high-level opening-up platforms such as free trade zones, Li said, adding that it will continue to make efforts to improve the overall business environment.

In the first 11 months of 2024, more than 52,000 foreign-invested enterprises were newly established in China, a year-on-year increase of 8.9 percent and the highest level on record for the same period, according to the ministry.

Jean-Paul Agon, chairman of L'Oreal Group, said: "Success in China makes you stronger worldwide. That is why we firmly believe that the next China is still China and that investing in China is investing in our future."

Last week, the Ministry of Foreign Affairs said at a news conference that in the past five years, the return rate on direct investment in China by foreign investors stood at about 9 percent, ranking among the highest in the world.

Gao Lingyun, a researcher at the Chinese Academy of Social Sciences, said that amid intensifying global uncertainties, China's unwavering commitment to opening-up, a vast consumer base, a complete industrial system and robust manufacturing capabilities offer unique advantages that are increasingly appealing to foreign investors.

In November, China issued revised regulations for foreign investors in its listed companies, expanding the eligibility criteria and easing financial requirements in a bid to encourage foreign investors to make long-term and value investments.

"China's ongoing efforts to lower foreign investment barriers and improve its business environment have significantly enhanced the country's appeal as a prime destination for global investors," Gao added.

According to a survey released by the German Chamber of Commerce in China in December, 92 percent of German companies intend to continue their operations in the country. Notably, more than half of the respondents said they plan to boost their investments in the next two years.

Similarly, businesses in the United Kingdom will stabilize their investments in China despite challenges, with about 76 percent of UK companies maintaining or increasing their investments in the Chinese market, a survey released by the British Chamber of Commerce in China showed in December.