China’s 2025 investment framework: What global businesses need to know

On 19 February 2025, China unveiled a comprehensive action plan to stabilise and promote foreign investment. The plan includes various strategic measures which the government aims to use to attract and retain foreign capital.

China’s 2025 action plan aims to attract foreign investment, enhance economic stability, and modernise key industries. It focuses on refining the Invest in China brand, strengthening cooperation between central and local governments, and ensuring equal treatment for foreign-invested enterprises (FIEs).

The plan encourages reinvestment by directing capital into advanced manufacturing, modern services, and underdeveloped regions. To simplify foreign mergers and acquisitions, China will streamline regulations and lower barriers for cross-border transactions, explain the Ecovis consultants. Additionally, easing loan restrictions and supporting regional headquarters for multinational corporations will foster long-term investment. Transparency initiatives, such as regular policy briefings, further reinforce China’s commitment to an open and competitive business environment.

Key measures of China’s 2025 investment framework

China’s 2025 foreign investment action plan outlines 20 key measures to further open its economy and maintain a stable investment climate. These measures impact businesses across various industries, including manufacturing, services, telecom, healthcare, and education, regardless of their listing status.

For non-listed foreign companies, some important measures include:

• Encouraging foreign investment: Develop operational guidelines for strategic investment and enhance promotional efforts to attract long-term foreign capital in listed firms.
• Supporting reinvestment: Improve the business environment, ensure equal treatment for foreign enterprises, and introduce policies to encourage reinvestment of profits, including pilot programmes for investment reporting.
• Facilitating mergers & acquisitions: Amend regulations under the foreign investment law to simplify M&A procedures, expand management scope, and ease restrictions on cross-border share swaps.

What China wants to achieve with the action plan

China’s new action plan reaffirms its commitment to attracting foreign investment by expanding market access, simplifying processes, and promoting fair competition. Despite challenges, its focus on high-tech growth, green industries, and global integration signals new opportunities. While the effectiveness of these measures remains uncertain, China’s proactive approach aims to sustain investment and economic stability in 2025 and beyond.

Resource: https://www.ecovis.com/global/chinas-2025-investment-framework-what-global-businesses-need-to-know/