Plan unveiled to attract more foreign investment

China will expand pilot programs in key sectors, including telecommunications, healthcare and education, to further open up its economy and attract global capital, according to an action plan unveiled on Wednesday for stabilizing foreign investment in 2025.

Approved and released by the State Council, China's Cabinet, the plan aims to attract more foreign investment in high-tech industries, offering greater market opportunities and deeper collaboration prospects for multinational corporations.

According to the action plan, the government will expand pilot programs for opening up the telecommunications and healthcare sectors in a timely manner. It will also develop a program for the orderly expansion of the education and cultural sectors. The decisions will be announced at an appropriate time and implemented steadily.

Experts and company executives see the action plan as another major move by China to attract global capital, following its removal of all restrictions on foreign investment in the manufacturing sector last year.

Zhao Fujun, a researcher at the Beijing-based Development Research Center of the State Council, said these measures align with economic development trends and industry evolution.

"By advancing the implementation of relevant opening-up initiatives and optimizing pilot programs, the action plan will play a key role in attracting high-quality foreign investment this year," said Zhao.

Poh-Yian Koh, senior vice-president of US express transportation service provider FedEx Corp, said that China's new policy measures will continue to create more business opportunities for foreign companies in its huge market.

Koh, who is also president of FedEx China, noted that China hosts one of the group's largest and most extensive global operations. She said the company has witnessed and benefited from China's economic growth and opening-up policies over the past four decades.

According to the action plan, China will encourage foreign capital to undertake equity investment in the country. It also calls for efforts to optimize rules and procedures for foreign mergers and acquisitions.

Furthermore, the plan highlights the government's support for foreign enterprises in participating in China's new industrialization process, with a focus on attracting investment in high-tech sectors and providing more market opportunities and collaboration space for foreign companies.

Data released on Wednesday by the Ministry of Commerce shows that China attracted 97.59 billion yuan ($13.4 billion) in foreign direct investment in January, marking a 27.5 percent increase from the previous month, but a 13.4 percent year-on-year decline.

In January, China saw investment from the United Kingdom soar 324.4 percent year-on-year, investment from South Korea surge 104.3 percent and investment from the Netherlands jump 76.1 percent.

Chen Jianwei, a researcher at the University of International Business and Economics' Academy of China Open Economy Studies in Beijing, said that as the nation accelerates its transition toward green and innovation-led growth, global investors are placing greater emphasis on digital transformation, research and development, high-end manufacturing and tech-intensive green industries.

Supported by China's policy assistance, abundant talent pool and well-developed supply chains, Norsepower Marine Technology (Yancheng), a ship fittings manufacturer in Yancheng, Jiangsu province, plans to export up to 50 marine rotary sails this year.

The company is a subsidiary of Norsepower Oy Ltd, a Finnish enterprise specializing in renewable energy solutions for the maritime industry.

These sails, which will be installed on oceangoing vessels, are estimated to reduce annual fuel consumption by 5,000 metric tons and lower carbon emissions by 15,000 tons, according to Hai Yunyi, president of Norsepower Marine Technology (Yancheng).

"The marine rotary sails are power devices that utilize aerodynamic effects to serve as an alternative to traditional fuel," Hai said.

zhongnan@chinadaily.com.cn