China rolled out a number of measures to open up its free-trade zones as state leaders go on a charm offensive to woo foreign investors.

The government will trial a slew of international trade rules in qualified free-trade zones or ports, according to a document released on Thursday (Jun 29) by the State Council, China’s cabinet. 

“It signals to the foreign investment community that China is gradually opening the door wider,” said Frederic Neumann, chief Asia economist at HSBC in Hong Kong. 

Chinese President Xi Jinping and Premier Li Qiang have in recent weeks delivered speeches on China’s commitment to opening up and pledged to protect and welcome foreign investors. The moves come as industry crackdowns and raids at foreign firms have dampened investor confidence and efforts to “de-risk” supply chains further cloud China’s prospects for future growth. 

Foreign financial institutions in pilot areas will be allowed to provide similar new services to their Chinese counterparts, and companies or individuals in the regions will be allowed to buy overseas financial services, according to the new measures. 

Measures relating to the financial sector show China is making “a step forward” in opening up, according to May Zhao, managing director and head of equity research at Zhongtai Financial International. She’s looking next for more detailed guidance on permitting foreign institutions to conduct the same services as Chinese peers in pilot zones, she said. 

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Neumann added that the initiatives will allow for “much smoother financial operations” for the multinational corporations operating in the free-trade zones. Despite the geographical limitations of those zones, Neumann called the measures a “stepping stone” for overseas firms.

“I’m sure that foreign companies will want to expand the footprint to access the wider Chinese economy,” he added. BLOOMBERG