China is lifting restrictions on foreign investment in the domestic manufacturing sector, as reported by state media.
The decision is aimed at encouraging more foreign businesses to expand their presence in China, especially during a time of increasing geopolitical tensions. Beijing’s treatment of both domestic and foreign private sector players has led many global companies to reassess their investments in the country.
During the Belt and Road Forum in Beijing, President Xi Jinping announced that remaining restrictions on manufacturing-related activities by foreign companies in China will be removed. This information was reported by Jiemian, a tech and business outlet, and republished by the state-owned Securities Daily.
A researcher affiliated with the Chinese Ministry of Commerce stated that this move signals China’s intention to further open its doors to foreign investment. However, it should be noted that there are already few restrictions on foreign investment in China’s manufacturing sector.
The Chinese government regularly publishes a “negative list” that outlines areas where foreign companies are prohibited or restricted from investing. The latest version of this list, published in 2021, only included two restrictions related to the manufacturing sector. Xi’s announcement removes these remaining restrictions.
In recent years, China has been actively seeking more foreign investment in its manufacturing sector. For instance, in 2018, the government lifted ownership caps on ventures producing electric vehicles and hybrids, and this measure was later extended to all passenger car ventures in 2022.
It remains to be seen whether this latest move by
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