(Source: "China Economic Weekly" 2025-03-28)
Beijing in March is full of spring. In the Beijing Yizhuang Economic and Technological Development Zone, on the production line of the Beijing Imaging Equipment Manufacturing Base, a "big" CT machine is being gradually assembled under the precise operation of a robotic arm.
“Out of every three CT units sold by GE Healthcare globally, two are produced in Beijing. The equipment exports from this Beijing base account for about 50% of Beijing’s medical machinery exports, and are supplied to more than 130 countries and regions around the world annually.” The relevant person in charge of the Beijing base of General Electric (hereinafter referred to as “GE”) proudly introduced it to the reporter of China Economic Weekly.
The Beijing base is GE Healthcare’s first manufacturing base in China. It is currently one of GE Healthcare’s largest imaging equipment manufacturing bases in the world, with full series and full product line imaging equipment manufacturing capabilities. In 2024, it will be rated as the first "Lighthouse Factory" in China's medical equipment industry.
This is a microcosm of foreign-funded enterprises investing in China. If we compare foreign-funded enterprises to thriving trees, we can find that in the "jungle" of China, foreign-funded enterprises have undergone many new changes: investment in high-tech industries, green economy, digital economy and other fields has increased significantly; they have accelerated digital transformation in China, using big data, artificial intelligence, cloud computing and other technologies to continuously improve operational efficiency and market competitiveness... If foreign investment used to be like migratory birds, chasing low costs and policy dividends, now it is more like a giant tree with roots, extending its branches and leaves to a broader fertile ground for innovation.
In the story of open cooperation written jointly by China and foreign countries, we see that the "gold content" of the phrase "investing in China is investing in the future" continues to rise.
Visual China
Foreign capital has not left China on a large scale
Judging from the data, how effective will China be in utilizing foreign investment in 2024? On the one hand, there were 59,080 newly established foreign-invested enterprises across the country, a year-on-year increase of 9.9%; on the other hand, the actual amount of foreign capital used was 826.25 billion yuan, a year-on-year decrease of 27.1%.
Two seemingly contradictory data make many people confused: Has foreign capital withdrawn from China on a large scale?
In fact, these two "one increase and one decrease" data reflect the dynamic changes of foreign investment in China's economic structural adjustment. Short-term fluctuations cannot explain the large-scale withdrawal of foreign investment from China. On the contrary, in recent years, by continuously optimizing the business environment, expanding open areas and promoting industrial upgrading, China remains a hot spot for global investment.
Photographed by Xiao Yi, our chief photographer
The foreign investment structure is being optimized towards high value-added areas
At any time, macroeconomic analysis cannot be separated from the international economic environment.
“The decline in foreign investment data is not only the result of the severe and complex international economic environment, but also a reflection of China’s own economic structural adjustment.” Fan Penghui, director of the Foreign Direct Investment Research Institute of the Institute of International w88 and Economic Cooperation of the Ministry of Commerce, analyzed to a reporter from China Economic Weekly.
From an international perspective, the decline in the scale of foreign investment attracted by China is synchronized with the decline in global investment, and international w88 has entered a cyclical decline.
The latest "Global Investment Trends Monitor" report released by the United Nations w88 and Development Organization shows that global foreign direct investment fell by 8% in 2024. Asia, the largest recipient of foreign direct investment among developing regions, saw investment inflows fall by 7%.
Fan Penghui said: "In the context of the decline in global investment scale, foreign direct investment in China has declined in recent years. This is a cyclical contraction of my country's use of foreign investment after a high level, and it is a normal phenomenon. After all, project investment requires cycles. Some years are high, and some years are low. These are normal market adjustments."
Returning from the international environment to China’s data itself, what we see is still strong.
According to statistics from the Bank of China Research Institute, in 2021 and 2022, my country's actual foreign capital utilization reached a record high. In 2021, China's actual use of foreign capital reached 1.15 trillion yuan, a year-on-year increase of 14.9%. In 2022, China's actual use of foreign capital will continue to grow, reaching 1.23 trillion yuan, a year-on-year increase of 6.3%.
Although my country's actual use of foreign capital in 2023 was 1,133.91 billion yuan, a year-on-year decrease of 8.0%, there were 53,766 newly established foreign-invested enterprises across the country, a year-on-year increase of 39.7%.
"Starting from 2023, the scale of FDI (foreign direct investment) has indeed declined for two consecutive years, but looking at the extended period, China's actual utilization of foreign investment is still at a high level in the past 10 years, firmly ranking among the top in the world." Zhao Zhongxiu, president of the w88 casino, told a reporter from China Economic Weekly.
Fan Penghui firmly believes that the statement that "foreign capital is leaving China on a large scale" cannot be established.
"The outside world is more over-interpreting individual cases or short-term fluctuations. In fact, China is still one of the most important countries in the world for foreign investment inflows, and the foreign investment structure is being optimized towards high value-added areas." Fan Penghui said.
Photographed by Xiao Yi, our chief photographer
my country continues to optimize its foreign investment structure
Whether they are optimistic about China's economy or not, foreign investors have cast a "vote of confidence" with practical actions. But it is true that some foreign-funded companies have adjusted their layout in the Chinese market, and some companies have chosen to reduce their business or withdraw from the Chinese market.
For example, in the manufacturing field, Samsung has gradually closed some factories in China in recent years, including mobile phone and electronic equipment production lines, and transferred production capacity to lower-cost countries such as Vietnam and India; in the field of retail and consumer goods, Muji will close some Chinese stores in 2023. The main reason is that intensified market competition and the rise of local brands have led to a decline in profitability in the Chinese market.
In addition, there are also the transfer of Apple's supply chain and the relocation of Microsoft Research... There are geopolitical risk factors and the result of intensified market competition.
"The U.S. strategy towards China is that the talents of multinational companies must leave, and high-tech technology research and development must go, otherwise it is politically incorrect. Based on the competition between China and the United States, Microsoft Research Institute was moved to India, and the Apple industry chain had to leave China. Otherwise, the supply chain business will be gone and no money will be made." Zhang Yansheng, a researcher at the China Institute of Macroeconomics, analyzed to a reporter from China Economic Weekly.
The withdrawal of some foreign capital from China reflects the trend of rising labor costs in China and the restructuring of global supply chains. But looking at the essence from the phenomenon, in fact, in recent years, my country's structure of utilizing foreign investment has continued to be optimized.
Data from the Ministry of Commerce shows that in 2023, the actual use of foreign investment in high-tech manufacturing will account for 11.1% of the country's actual use of foreign investment, an increase of 1.5 percentage points from 2022; the proportion of investment in the manufacturing sector will reach 27.9%, an increase of 1.6 percentage points. In 2024, the actual use of foreign investment in high-tech manufacturing will account for 11.7% of the country's actual use of foreign investment, an increase of 0.6 percentage points from 2023; the proportion of investment in the manufacturing sector will reach 26.8%, which is basically the same as the previous year on the basis of a slight decrease.
"Obviously, as China's economic structure transforms from traditional manufacturing to high value-added fields such as high-tech and service industries, the investment direction of foreign investors is also adjusting accordingly, with increasing attention and investment in emerging industries such as high-tech fields." Fan Penghui said.
In view of the transfer of industrial chains by multinational enterprises, at the regular policy briefing of the State Council held by the State Council Information Office on February 20, Zhu Bing, Director of the Department of Foreign Investment Management of the Ministry of Commerce, responded to this issue.
Zhu Bing said that China is the second largest consumer market in the world, and the market size is still expanding steadily, consumption is also continuing to upgrade, and products and services are updated and iterated very quickly. It is very common for various business entities, including foreign-funded enterprises, to adjust their investment layout based on the Chinese market conditions, their own business development strategies, and the comparative advantages of each country. It is also a normal phenomenon in the market economy.
Overall, the Chinese market has maintained a relatively strong attraction to foreign investment. According to statistics from the Ministry of Commerce, as of the end of 2023, the number of existing foreign-funded enterprises in China was 465,000, an increase of 46,000 from 2019 before the epidemic. In 2024, 59,000 new foreign-funded enterprises will be established in my country, a year-on-year increase of 9.9%.
“It can be seen that although multinational companies come in and out, the overall number of foreign companies investing in China is still increasing.” Zhu Bing said.
Fan Penghui believes that the increase in the number of foreign-funded enterprises is due to changes in the structure of foreign investment in China, with the proportion of the service industry and high-tech industries increasing significantly.
my country's service industry utilizes about 70% of foreign investment, and small and medium-sized service industry enterprises account for a relatively high proportion of newly established foreign-funded enterprises.
“In recent years, foreign investment has shown an obvious trend of service-oriented and asset-light. Not only China, but also global cross-border investment has also shown a trend of service-oriented and asset-light.” Zhang Yansheng said.
The increase in the number of foreign capital also indicates the phenomenon of "miniaturization" of foreign capital. Zhang Yansheng analyzed: "Some small and medium-sized foreign-funded enterprises have begun to invest in China. They may be small and medium-sized enterprises with extended supply chains, such as Yiwu Small Commodity Market. Now more and more foreign investment comes from some customers in Southeast Asia, the Middle East, Latin America, and Africa."
Photographed by Xiao Yi, our chief photographer
China has entered a new stage in attracting foreign investment
There are two comparative data of "one increase and one decrease" of foreign investment: last year, China's actual use of foreign investment fell by 27.1% year-on-year, while overseas direct investment increased by 10.5% year-on-year. Once these two data were compared, it triggered a discussion on "Does China still need foreign investment?" Some people believe that "China does not need foreign investment that much", and some foreign media use this to advocate that "China does not welcome foreign investment."
But in fact, attracting and utilizing foreign investment has always been an important part of my country's basic national policy of opening up. Practice has proved that foreign investment is a witness, contributor and beneficiary of China's reform and opening up, and is an indispensable force for us to build a new development pattern.
In terms of contribution, data disclosed by the Ministry of Commerce show that foreign-invested enterprises in China contribute nearly 7% of employment, one-seventh of tax revenue, about one-third of imports and exports, and one-half of exports of mechanical and electrical products and high-tech products. They are not only an important part of the domestic cycle, but also a bridge linking the domestic and international dual cycles.
In addition, attracting foreign investment provides important support for my country's construction of a modern industrial system. Up to now, foreign investment in China has covered 20 industry categories and 115 major industry categories; in the manufacturing field, there are foreign investments in 31 major categories and 548 sub-categories. As the only country with all industrial categories in the United Nations Industrial Classification, our country has foreign investment playing a decisive role.
Foreign-funded enterprises have driven cross-border flows of capital, technology, raw materials, products, services, etc. through their supply chains, allowing my country to deeply participate in global industrial division of labor and cooperation, helping us create more open and resilient industrial and supply chains.
In Zhao Zhongxiu’s view, the reason why China’s data on attracting foreign capital and outbound investment has attracted public attention is mainly based on two reasons: from a capital perspective, my country has gradually shifted from the past capital shortage stage to a capital surplus stage; from the perspective of foreign investment strategy, my country has shifted from the past stage of solely focusing on the introduction of foreign capital to a new stage of equal emphasis on “bringing in” and “going out”.
But does this mean that China no longer needs foreign investment? In fact, in the past two years, our country has successively launched new policies and has responded to this problem with practical actions.
Based on the previously released "24 Foreign Investment Policies", the "2025 Action Plan to Stabilize Foreign Investment" (hereinafter referred to as the "Action Plan") released on February 17 this year further proposed 20 policy measures from four aspects: orderly expanding independent opening up, improving investment promotion levels, enhancing the effectiveness of open platforms, and increasing service guarantees.
The "Action Plan" also has a timetable, which clearly requires that various measures and policies and measures will be implemented and effective before the end of 2025, which fully demonstrates our country's confidence and determination to adhere to a high level of opening up and vigorously attract foreign investment.
“Foreign capital is still an important source of capital, especially in some emerging fields and high-risk projects.” Zhang Yansheng said that under the new development pattern, foreign capital helps connect two domestic and international markets and two resources. China still needs foreign capital, but the demand for foreign capital has shifted from “quantity-driven” in the past to “quality-driven.”
Currently, China pays more attention to the quality of foreign investment, especially in the fields of high technology, high added value and green economy. High-quality foreign investment will still choose to stay in China, and more high-quality foreign investment will enter our country.
“Attracting foreign investment means ‘you have me, and I have you’. Only in this way can economic security be guaranteed. After all, the advantages of foreign investment are not only reflected in technology, but also in management advantages and cultural integration. These are all indispensable.” Zhao Zhongxiu said.
Foreign investment layout is moving towards "new"
Recently, foreign investment continues to be intensively located in various parts of China: In the Yangtze River Delta region, Boston Scientific's Shanghai Lingang factory was completed and opened, and consumables for intravascular ultrasound diagnosis will be put into production here in the future; Toyota wholly-owned a factory to produce Lexus pure electric vehicles.
In the Guangdong-Hong Kong-Macao Greater Bay Area, Dassault Systèmes plans to build a new productivity empowerment platform and foreign-owned subsidiaries, and Siemens laid the foundation for a new high-end medical equipment R&D and manufacturing base.
In the Beijing-Tianjin-Hebei urban agglomeration, Sanofi has built a new insulin production base in Beijing, setting a record for the company's largest single investment in China...
From these trends, it is not difficult to find a common trend - many far-sighted foreign companies are taking advantage of the industrial chain advantages of Made in China to increase investment and expand production in China, promote the improvement and upgrading of their own production capabilities and R&D levels, and move towards the "new".
Manufacturing restrictive measures "cleared"
Walking in the Caojing factory of Huntsman Polyurethane (hereinafter referred to as "Huntsman") in Shanghai Chemical Industry Zone, modern production facilities are lined up in rows, logistics vehicles shuttle in an orderly manner, and instrument data in the highly modern production and operation control room are constantly beating. These polyurethane "blood" originating from the Caojing base are being continuously supplied to downstream markets such as construction buildings, home life, transportation, textiles and shoe materials, and food storage through the pipe network extending in all directions.
Pan Lumin, a world-renowned chemical materials manufacturer and president of Huntsman Asia Pacific, told reporters: "Huntsman has been deeply involved in the Chinese market for more than 30 years and has always been optimistic about the huge potential of the Chinese market and the continuously open policy environment."
In recent years, more and more foreign-funded enterprises have actively participated in the digital and green development process of China's manufacturing industry.
Data from the Ministry of Industry and Information Technology shows that in 2024, the actual use of foreign investment in the manufacturing industry will exceed 220 billion yuan, and the actual use of foreign investment in high-tech manufacturing will account for 11.7%. Among them, the medical equipment and instrumentation manufacturing industry, and the computer and office equipment manufacturing industry have outstanding growth rates, with actual use of foreign capital increasing by 98.7% and 21.9% respectively.
In the GE medical workshop, a production line with only 20 people can produce the same output as a traditional factory with two to three hundred people. Based on real-time production scheduling based on cloud computing, the average order delivery time has been significantly shortened from the past 14 days to 7 days. AI can detect early defects in raw materials with an accuracy of up to 91%.
According to the reporter’s understanding, this production line was developed by China’s R&D team in conjunction with various forces. It can not only directly meet the needs of Chinese users, but its “Intelligent Manufacturing in China” is being exported to the world just like the “Made in China” in the past.
“Domestic production is not simply ‘borrowing’. We believe that domestic production is not simply bringing foreign products to China, but starting from the needs of the market and customers and using Chinese products to truly meet China’s needs.” Zhang Yihao, Global Executive Vice President of GE Healthcare, President and CEO of China, said that in the future, GE Healthcare China will continue to deepen its domestic layout and accelerate innovative research and development in China, and deepen cooperation with users and supply chain partners to build an ecosystem.
Foreign investment access is the "wind vane" for expanding opening up. On November 1, 2024, China officially implemented the new version of the negative list for foreign investment access, and the restrictions on foreign investment access in the manufacturing sector achieved a historic "clearance". From new energy vehicles to integrated circuits, from precision instruments to biopharmaceutical equipment, for the first time, foreign-funded enterprises have obtained exactly the same access rights as domestic-funded enterprises.
“The policy of ‘clearing’ restrictive measures in the manufacturing sector is highly consistent with GE Healthcare China’s strategy of deepening domestic layout and accelerating innovative research and development. GE Healthcare’s long-term development in China will also benefit from this.” Zhang Yihao said that in the future, GE Healthcare will further deepen its layout in China and rely on policy dividends to achieve the leap of “Chinese innovation” to the high end of the global value chain.
The system focuses on implementation. The "Action Plan" points out that the comprehensive lifting of restrictions on foreign investment access in the manufacturing sector will be implemented. For areas outside the negative list for foreign investment access, foreign investment access shall be managed strictly in accordance with the principle of consistency between domestic and foreign investment.
Biomedicine will be opened to foreign investment in an orderly manner
The policy dividends enjoyed by foreign investment are not limited to this. The "Action Plan" proposes "orderly expansion of independent opening up", including: "expanding pilot openings in telecommunications, medical care, education and other fields", "optimizing comprehensive pilot demonstrations for expanding opening up in the national service industry", "promoting orderly opening up in the biomedical field", etc.
The orderly opening of biomedicine has attracted much attention. The "Action Plan" proposes to "support qualified foreign-invested enterprises to participate in the pilot production of biological products in stages, speed up the review of provincial pilot plans and quality supervision plans, promote the optimization of resource allocation in the biopharmaceutical industry, and coordinate in a timely manner to solve the difficult problems encountered by enterprises during the pilot process."
Many interviewed executives of multinational pharmaceutical companies in China told reporters that the open policy of the "Action Plan" in the field of biomedicine directly responded to the core demands of multinational pharmaceutical companies in China, and allowed them to personally feel the benefits of the policy for business development in China.
On March 21, AstraZeneca announced an investment plan worth up to US$2.5 billion to establish the world's sixth strategic R&D center and China's second strategic R&D center in Beijing, and reached a number of major R&D and production cooperation.
“This US$2.5 billion investment demonstrates our confidence in Beijing’s world-class life sciences innovation ecosystem, the city’s extensive cooperation opportunities and excellent talent resources, and also reflects our firm commitment to China.” Pascal Soriot, AstraZeneca’s global CEO, told reporters. In recent years, Suboko has visited China frequently. In his view, China is rapidly emerging as an important source of global medical technology innovation. He has repeatedly emphasized that "investing in China is investing in the future."
Deheran, President and General Manager of Eli Lilly China, said that the Chinese pharmaceutical market is undergoing profound changes. Policy support, market potential, innovation vitality, etc. have given Lilly confidence in deepening its presence in China and accelerating innovation.
The release of policy dividends is reshaping the strategies of foreign-funded enterprises in China. Sanofi announced that it will invest 1 billion euros in a new insulin production base in Beijing, and Eli Lilly and Company China announced that it will invest approximately 1.5 billion yuan in upgrading the production capacity of its Suzhou factory... Transnational giants in the pharmaceutical field are voting for China with actions.
"Usually, my country has an internal review mechanism for access to the medical and biological fields, and is relatively cautious in opening up. Now that China's economy has developed, we are no longer afraid of competition, and countries can learn from each other in the process of opening up." Zhao Zhongxiu said.
Cooperation with foreign capital has entered a stage of deep collaboration
This year’s government work report proposed “encouraging foreign investors to expand reinvestment and supporting participation in supporting collaboration upstream and downstream of the industrial chain.”
When the flow of innovative elements is accelerating around the world, the cooperation between Chinese and foreign enterprises has broken through the traditional technology transfer model and entered a stage of deep collaboration.
Take Boston Scientific as an example. The process of localization of the intravascular ultrasound diagnostic system AVVIGO+ is of great significance. This product was deeply involved in the research and development of the Chinese team. Not only was it launched domestically 10 months in advance, but the locally produced core console was also the first to be supplied to overseas markets. This breaks the limitations of traditional industrial division of labor and demonstrates the strong vitality of innovative symbioses in an open environment.
In different industries, innovative symbiotic models are also emerging.
As one of more than 2,000 French companies in China, global digital solutions provider Dassault Systèmes has continued to increase investment since entering China in 2005.
Zhang Ying, President of Dassault Systèmes Greater China, told reporters with emotion: "When solutions for 12 industries are simultaneously launched in the Chinese market, we know we have chosen the right strategic pivot - after 20 years of rooting in China, Dassault Systèmes' business has grown more than 22 times. Such a cross-industry in-depth layout has no precedent in the world."
In the past year, Dassault Systèmes has continuously increased its investment in the Chinese market and firmly embraced the Chinese market.
“For example, Dassault Systèmes and the Central South Architectural Design Institute jointly established a digital solutions company, Zhongda Digital. This is also the first joint venture established by Dassault Systèmes in China. It aims to transplant the PLM concept of high-end manufacturing to the construction industry, realize ‘building a house like building a car’, and empower the digital and intelligent transformation of China’s cities and construction industry with ‘mapless construction’.” Zhang Ying said.
According to the reporter’s understanding, the PLM platform developed by Zhongda Digital will complete internal testing and be commercialized in 2025. It plans to create the best practices for digital transformation in China’s urban and construction fields, and then replicate and promote it globally.
There are many such examples. Huntsman established its first foreign-funded polyurethane technology center in Shanghai in 1994, and has now formed a manufacturing system linked to Shanghai, Guangdong, Jiangsu and Tianjin. With the model of "local R&D - regional radiation - global feedback", Huntsman continues to increase its sustainable material solutions, confirming its strategic layout of "in China, connecting the world".
The deeper change behind these cases is that foreign-funded enterprises no longer regard China as a "low-cost manufacturing base", but as a source of innovation and a global market hub.
"We invest in a vibrant life sciences ecosystem and use cutting-edge technologies to promote innovation. During this period, I have witnessed China gradually becoming a global leader in life sciences and making important contributions to scientific progress and medical breakthroughs." Suboko said.
He firmly believes that China will continue to consolidate its status as a global scientific power and bring more benefits to patients around the world in the coming years.
The popularity of “foreign investment in Qiong” continues to rise
In Hainan, located on the coast of the South China Sea, with the further advancement of the construction of the free w88 port, the popularity of "foreign investment in Hainan" continues to rise.
In Yalong Bay, Sanya, Hainan, the DFS Yalong Bay project covering an area of 128,000 square meters is about to be launched.
“This is our largest single investment in 60 years, and it can help us better seize China’s unparalleled consumption upgrade opportunities.” Liu Xingshu, president of DFS China, told reporters.
This year’s government work report clearly stated that “accelerating the implementation of the core policies of the Hainan Free w88 Port” and the “Action Plan” proposed to “accelerate the implementation of the core policies of the Hainan Free w88 Port”. It is precisely based on the advantages of the Hainan Free w88 Port that it "both benchmarks against international high-standard economic and w88 rules and is based on the characteristics of the local consumer market" and its eager anticipation for the implementation of the policy. DFS, a luxury goods group, chose to launch the Yalong Bay project on the eve of the customs closure operation.
“According to our observation, many well-known European and American brands hope to use Hainan as a ‘test field’ to enter the Chinese mainland market.” Liu Xingshu said that foreign companies are optimistic about the potential of Hainan Free w88 Port and are eager to understand relevant policies.
Liu Xingshu suggested that Hainan Free w88 Port can learn from the experience of well-known international tourist destinations and free w88 ports. "Zero tariffs, low tax rates, and simplified tax systems are common practices in international free w88 ports. It is recommended that Hainan implement zero tariff arrangements, set a lower sales tax rate, and realize the integration of taxed retail and duty-free retail supervision."
Not only DFS, but also in the past year, more and more foreign capital has invested in Qiong and landed in Hainan. They all hope to seize new opportunities for common prosperity from the solid actions of Hainan Free w88 Port’s high-level opening up to the outside world.
Last year, there were 2,072 new foreign-invested enterprises in Hainan, a year-on-year increase of 19.77%. There are currently 149 countries and regions investing in Hainan.
Zhao Zhongxiu expressed his appreciation for foreign investment’s optimism about Hainan. “As Hainan’s policy dividends continue to be released and the advantages of the open free w88 port continue to emerge, Hainan’s foreign-invested enterprises will undoubtedly achieve both quantitative and qualitative improvements. It can be expected that the ‘circle of friends’ of foreign investors in Hainan will continue to expand in the future, after all, the ‘market’ is here.”
Make it more convenient for foreign investors to come to China and make their stay in China more comfortable
Stabilizing foreign investment is one of the important strategies for the high-quality development of China's economy. Especially in the current context of increased global economic uncertainty and intensified international competition, taking multiple measures to stabilize foreign investment has important practical significance and long-term value.
In interviews and surveys, our reporters found that there are still some obstacles for foreigners to work and live in China and for foreign companies to operate in China, and the work of stabilizing foreign investment needs to be further refined and improved.
True implementation of national treatment for foreign investment
Tanja Leinthaler, a German who has lived in Shanghai for 28 years, is a single mother with two children and is currently engaged in Sino-German cultural exchanges in China.
Due to work and health reasons, it was difficult for Tang Yali to realize her wish to return to China to visit relatives. From the end of November 2024 to the end of this year, China has expanded the scope of application of Germany’s trial unilateral visa-free policy and extended the visa-free stay period. This made her deeply aware of China's progress in visa facilitation.
"When my children came to China from Germany to visit this year, they were able to stay for a full month without having to apply for cumbersome certificates. This change fully reflects China's sincerity in expanding opening up and promoting international exchanges." Tang Yali told reporters.
The visa-free policy is not only a passport, but also a bridge that enhances exchanges and w88 between countries. In order to increase the service guarantee for foreign investment, the "Action Plan" emphasizes in "promoting the facilitation of personnel exchanges" that "accelerate negotiations on mutual visa exemption agreements and continue to steadily expand the scope of unilateral visa exemption countries."
"To promote people-to-people exchanges, the door should be opened as wide as possible. It should be as convenient as possible. The closer the flights, the better. Let them see China with their eyes and eliminate misunderstandings. This is the most important thing." Zhang Yansheng analyzed.
The reporter's interview found that among the many provisions of the "Action Plan" on "improving the level of investment promotion", foreign businessmen particularly value the implementation of national treatment for foreign investment.
What Tang Yali is currently confused about is that she still has not received social security.
"In the field of social security, there are still institutional thresholds for medical insurance coverage: currently only foreigners who hold the "Permanent Residence Permit for Foreigners of the People's Republic of China" or are employed by large enterprises can participate in the insurance, which puts many long-term residents under pressure to pay for medical care at their own expense." Tang Yali said.
She said that she is currently preparing for the "Sino-German Culture Online" project, planning to build a cross-cultural exchange platform covering cultural exchanges, cultural tourism and other fields. However, since she does not have a permanent residence permit, she cannot apply for credit cards and loans in China, which has a certain impact on her starting a business.
“I am actively applying for a permanent residence permit and hope to be successfully approved by the end of this year.” Tang Yali said.
“If we want to truly stabilize foreign investment, we cannot divide the different entities of the enterprise into ‘ourselves’ and ‘outsiders.’” Zhang Yansheng said that these foreigners have participated in Chinese-style modernization and made contributions, and they should be “homegrown people.”
"Although there are geopolitical factors, they do not leave China and build together with the Chinese. However, we always regard them as foreigners and do not provide social security. This concept needs to be changed." Zhang Yansheng said.
Fan Penghui said that regarding the facilitation of stay and residence, involving the handling of social security including medical security, there may still be some obstacles in local implementation, and these problems will gradually be improved.
Balancing data security and foreign investment needs
Currently, stable foreign investment has encountered a new problem - data security.
With the deepening of globalization and digitalization, cross-border flow of data has become the norm, and foreign-funded enterprises need to transmit data between China and global headquarters to support business operations and decision-making.
“Data security is indeed one of the core issues that foreign-funded enterprises around the world are concerned about, especially in the context of accelerating digital transformation.” Zhao Zhongxiu said. For China, in the process of stabilizing foreign investment, how to balance data security with the operational needs of foreign-funded enterprises has become an important challenge.
In recent years, China has promulgated regulations such as the Data Security Law of the People's Republic of China and the Personal Information Protection Law of the People's Republic of China, which have strengthened the protection of data security and privacy, but also put forward higher requirements for the data flow of foreign-funded enterprises.
“This aspect may lead to an increase in the operating costs of foreign capital. Foreign-funded enterprises may need to invest more resources to meet data localization and compliance requirements, which may weaken the competitiveness of foreign capital in the Chinese market.” Zhang Yansheng said.
In accordance with internationally accepted practices and based on China's actual situation, our country has successively formulated cybersecurity laws, data security laws, and data export security assessment methods, and issued the "Regulations on Promoting and Standardizing Cross-border Data Flows" in March 2024. The vast majority of foreign-funded enterprises' applications for cross-border data flow have been approved.
“But when we introduce a series of safety laws, regulations and policies, we rarely evaluate their impact on foreign investment. In other words, comrades in non-economic departments may not understand the impact of their department’s policies on foreign w88 and foreign assets. This situation of railway police in charge of each section needs to be improved.” Zhang Yansheng said.
In Zhao Zhongxiu’s view, data security cannot be ignored in the process of stabilizing foreign investment. “The question now is how to define security? How to avoid generalization?”
The Central Economic Work Conference requires that in 2025, economic policies and non-economic policies should be integrated into the consistency assessment of macro policy orientation, coordinate the entire process of policy formulation and implementation, and improve the overall effectiveness of the policy.
"China needs to find a balance between data security and the development of foreign-funded enterprises through policy optimization, international cooperation and technological innovation on the premise of ensuring national security. This will not only help stabilize foreign investment confidence, but also promote China to occupy a more important position in the global digital economy." Zhao Zhongxiu said.
Fan Penghui analyzed that it may be a better path to further explore data openness in regions with mature conditions, and to promote the experience and practices explored in pilot trials on the basis of controllable risks.
Attached original text link:
