On 22 June 2026, the Ministry of Commerce, the National Development and Reform Commission and the Ministry of Finance jointly released the Action Plan for Stabilizing and Optimizing the Utilization of Foreign Investment (the “Action Plan”).
The Action Plan sets out a series of policy measures aimed at stabilizing foreign investment, improving the quality of foreign investment utilization, and further expanding high-level opening-up. It focuses on market access, investment facilitation, investment promotion, equal treatment for foreign-invested enterprises, and the modernization of foreign investment administration.
1. Further Opening of Key Sectors
The Action Plan proposes to deepen the opening-up of the services sector. Pilot programs will be expanded in areas such as vocational skills training institutions, vocational colleges, and high-level universities in science, engineering, agriculture and medicine. Beijing will be supported in further developing the national comprehensive demonstration zone for the opening-up of the services sector, with priority given to modern services such as the digital economy and healthcare.
The Action Plan also calls for continued opening in the financial sector. Subject to regulatory cooperation and risk control, more foreign financial institutions will be supported in using risk management tools, including treasury bond futures. Foreign institutions will also be supported in lawfully conducting fund investment advisory business. In addition, certain key foreign-invested enterprises may benefit from greater convenience in cross-border financing and from improved pre-filing consultation services for domestic listings.
In the healthcare and pharmaceutical sectors, the Action Plan highlights the need to facilitate cross-border segmented production of biological products and chemical drugs by overseas marketing authorization holders. It also proposes to further expand pilot areas for biotechnology and wholly foreign-owned hospitals, subject to approval procedures. Commercial insurers will be encouraged to include more innovative drugs and medical devices in their coverage.
2. Improving Foreign Investment Facilitation
A key measure is the planned revision of the rules on foreign investors’ mergers and acquisitions of domestic enterprises. The revision is expected to optimize approval and management procedures, improve requirements for payment of consideration, and strengthen coordination among regulatory authorities.
The Action Plan also supports greater flexibility for qualified foreign-invested equity investment institutions to participate as strategic investors in securities offerings by listed companies in unrelated industries.
Data cross-border transfer is another important focus. Free trade zones and pilot cities for service-sector opening-up will be encouraged to develop more scenario-based and field-level negative lists for outbound data transfers. National standards for identifying important data are expected to be developed in sectors such as industry, telecommunications, geographic information, automobiles, medicine, seed industry, aerospace and civil aviation.
The Action Plan also emphasizes reinvestment by foreign investors. Preferential tax policies for direct reinvestment of distributed profits will be implemented, and more reinvestment projects of foreign-invested enterprises may be included in lists of major and key foreign investment projects.
3. Attracting Foreign R&D Centers
The Action Plan places particular emphasis on encouraging foreign-invested enterprises to establish R&D centers in China. Support measures will be improved in areas such as the introduction of high-level foreign talent, establishment of open innovation platforms and training bases, development of new types of R&D institutions, commercialization of innovation results, and tax incentives for imported scientific research supplies.
This reflects China’s continued focus on attracting higher-quality foreign investment, especially investment linked to technology, innovation and industrial upgrading.
4. Strengthening Investment Promotion
The Action Plan calls for strengthening the “Invest in China” brand. China will promote investment-related events and explore the establishment of a comprehensive digital service platform for foreign investment. The platform is expected to integrate information collection, consultation, professional support and interactive feedback.
Local investment promotion activities will also be more closely regulated. The Action Plan proposes the introduction of lists of encouraged and prohibited matters for local governments in attracting investment. Local governments are required to honor policy commitments made in accordance with law, and provincial governments may provide support measures for investment projects in relevant sectors.
5. Ensuring Equal Treatment for Foreign-Invested Enterprises
The Action Plan stresses the full implementation of national treatment for foreign-invested enterprises. Unless otherwise provided by laws and regulations or required for national security, enterprise support policies in all sectors should apply equally to foreign-invested enterprises.
In areas such as government procurement and public bidding, fair competition review requirements must be strictly implemented. Procurement activities by universities, research institutes and similar institutions should also allow foreign-invested enterprises to participate on an equal basis.
Foreign-invested enterprises are also encouraged to participate in policies aimed at boosting consumption, including green consumption and the development of international consumption center cities. Eligible foreign-brand products and services should not be excluded from consumer promotion policies merely because of their foreign-invested background.
6. Improving Protection and Services for Foreign Investors
The Action Plan proposes to improve the online business environment by establishing a coordinated mechanism for reporting online infringements involving enterprises. This is intended to better protect the lawful online rights and interests of foreign-invested enterprises.
It also calls for stronger service support for major and key foreign investment projects, particularly in central and western regions. Problems encountered by foreign-invested enterprises will be handled through a closed-loop mechanism covering issue collection, processing and feedback.
7. Modernizing Foreign Investment Administration
The Action Plan supports greater regional coordination in attracting foreign investment. Eastern regions are encouraged to cooperate with border regions in investment promotion, industrial transfer and benefit-sharing arrangements. Border and cross-border economic cooperation zones may also work with other domestic regions and neighboring countries to develop industrial parks and coordinate investment projects.
The Action Plan also seeks to improve the foreign investment information reporting system. Direct reporting channels will be enhanced to ensure that foreign investment information is true, accurate and complete. Information sharing mechanisms will also be improved to support foreign investment administration in areas such as foreign exchange registration, administrative licensing and fixed-asset investment.
Comment
The Action Plan is a broad policy package aimed at improving China’s overall foreign investment environment. For foreign investors, the Action Plan signals that China remains focused on attracting long-term, higher-value investment, particularly in innovation-driven and strategically important sectors. Many of the measures will require further implementing rules before their practical impact becomes clear. We will monitor follow-up regulations, pilot programs and local implementation policies closely.
The Action Plan sets out a series of policy measures aimed at stabilizing foreign investment, improving the quality of foreign investment utilization, and further expanding high-level opening-up. It focuses on market access, investment facilitation, investment promotion, equal treatment for foreign-invested enterprises, and the modernization of foreign investment administration.
1. Further Opening of Key Sectors
The Action Plan proposes to deepen the opening-up of the services sector. Pilot programs will be expanded in areas such as vocational skills training institutions, vocational colleges, and high-level universities in science, engineering, agriculture and medicine. Beijing will be supported in further developing the national comprehensive demonstration zone for the opening-up of the services sector, with priority given to modern services such as the digital economy and healthcare.
The Action Plan also calls for continued opening in the financial sector. Subject to regulatory cooperation and risk control, more foreign financial institutions will be supported in using risk management tools, including treasury bond futures. Foreign institutions will also be supported in lawfully conducting fund investment advisory business. In addition, certain key foreign-invested enterprises may benefit from greater convenience in cross-border financing and from improved pre-filing consultation services for domestic listings.
In the healthcare and pharmaceutical sectors, the Action Plan highlights the need to facilitate cross-border segmented production of biological products and chemical drugs by overseas marketing authorization holders. It also proposes to further expand pilot areas for biotechnology and wholly foreign-owned hospitals, subject to approval procedures. Commercial insurers will be encouraged to include more innovative drugs and medical devices in their coverage.
2. Improving Foreign Investment Facilitation
A key measure is the planned revision of the rules on foreign investors’ mergers and acquisitions of domestic enterprises. The revision is expected to optimize approval and management procedures, improve requirements for payment of consideration, and strengthen coordination among regulatory authorities.
The Action Plan also supports greater flexibility for qualified foreign-invested equity investment institutions to participate as strategic investors in securities offerings by listed companies in unrelated industries.
Data cross-border transfer is another important focus. Free trade zones and pilot cities for service-sector opening-up will be encouraged to develop more scenario-based and field-level negative lists for outbound data transfers. National standards for identifying important data are expected to be developed in sectors such as industry, telecommunications, geographic information, automobiles, medicine, seed industry, aerospace and civil aviation.
The Action Plan also emphasizes reinvestment by foreign investors. Preferential tax policies for direct reinvestment of distributed profits will be implemented, and more reinvestment projects of foreign-invested enterprises may be included in lists of major and key foreign investment projects.
3. Attracting Foreign R&D Centers
The Action Plan places particular emphasis on encouraging foreign-invested enterprises to establish R&D centers in China. Support measures will be improved in areas such as the introduction of high-level foreign talent, establishment of open innovation platforms and training bases, development of new types of R&D institutions, commercialization of innovation results, and tax incentives for imported scientific research supplies.
This reflects China’s continued focus on attracting higher-quality foreign investment, especially investment linked to technology, innovation and industrial upgrading.
4. Strengthening Investment Promotion
The Action Plan calls for strengthening the “Invest in China” brand. China will promote investment-related events and explore the establishment of a comprehensive digital service platform for foreign investment. The platform is expected to integrate information collection, consultation, professional support and interactive feedback.
Local investment promotion activities will also be more closely regulated. The Action Plan proposes the introduction of lists of encouraged and prohibited matters for local governments in attracting investment. Local governments are required to honor policy commitments made in accordance with law, and provincial governments may provide support measures for investment projects in relevant sectors.
5. Ensuring Equal Treatment for Foreign-Invested Enterprises
The Action Plan stresses the full implementation of national treatment for foreign-invested enterprises. Unless otherwise provided by laws and regulations or required for national security, enterprise support policies in all sectors should apply equally to foreign-invested enterprises.
In areas such as government procurement and public bidding, fair competition review requirements must be strictly implemented. Procurement activities by universities, research institutes and similar institutions should also allow foreign-invested enterprises to participate on an equal basis.
Foreign-invested enterprises are also encouraged to participate in policies aimed at boosting consumption, including green consumption and the development of international consumption center cities. Eligible foreign-brand products and services should not be excluded from consumer promotion policies merely because of their foreign-invested background.
6. Improving Protection and Services for Foreign Investors
The Action Plan proposes to improve the online business environment by establishing a coordinated mechanism for reporting online infringements involving enterprises. This is intended to better protect the lawful online rights and interests of foreign-invested enterprises.
It also calls for stronger service support for major and key foreign investment projects, particularly in central and western regions. Problems encountered by foreign-invested enterprises will be handled through a closed-loop mechanism covering issue collection, processing and feedback.
7. Modernizing Foreign Investment Administration
The Action Plan supports greater regional coordination in attracting foreign investment. Eastern regions are encouraged to cooperate with border regions in investment promotion, industrial transfer and benefit-sharing arrangements. Border and cross-border economic cooperation zones may also work with other domestic regions and neighboring countries to develop industrial parks and coordinate investment projects.
The Action Plan also seeks to improve the foreign investment information reporting system. Direct reporting channels will be enhanced to ensure that foreign investment information is true, accurate and complete. Information sharing mechanisms will also be improved to support foreign investment administration in areas such as foreign exchange registration, administrative licensing and fixed-asset investment.
Comment
The Action Plan is a broad policy package aimed at improving China’s overall foreign investment environment. For foreign investors, the Action Plan signals that China remains focused on attracting long-term, higher-value investment, particularly in innovation-driven and strategically important sectors. Many of the measures will require further implementing rules before their practical impact becomes clear. We will monitor follow-up regulations, pilot programs and local implementation policies closely.