China tries to woo foreign firms back after slump in investment

CHINA is renewing its efforts to attract foreign businesses, pledging more engagement and unveiling an action plan to ease restrictions after inbound investment tumbled last year to its lowest in over three decades.

The Commerce Ministry will visit foreign enterprises to better understand their needs and find solutions to their problems, Vice-Minister Ling Ji said on Thursday (Feb 20). If certain issues cannot be immediately resolved, the ministry will coordinate with local authorities to ensure proper follow-up and resolution, Ling added.

The Commerce Ministry on Wednesday released an action plan to stabilise foreign investment, vowing to remove all market access restrictions in the manufacturing sector, ensure equal treatment of goods produced by both local and foreign firms, and improve access to credit. This is the latest in the central government’s ongoing efforts to reverse the investment slump since the pandemic, following a similar initiative announced in 2023.

Despite these measures, foreign firms have continued to scale back new investments in China. Last year, they channelled a net US$4.5 billion into the country, the lowest amount since 1992. BLOOMBERG