China to soften ownership restrictions

The Chinese Ministry of Commerce announced its intention to consider the feasibility of further relaxing or eliminating foreign ownership restrictions in a bid to attract more international investors. During a press conference, ministry spokesperson He Yadong stated that while the negative list for foreign investment continues to be shortened, China is committed to enhancing its business environment and providing better support to foreign companies.

Over the past five years, China has consistently revised its negative list for foreign investment, resulting in reduced barriers to foreign ownership in various sectors. These include areas like seed, automobile, vessel and aircraft manufacturing, securities, banking, and insurance. These changes demonstrate China’s ongoing commitment to opening up its economy to foreign investment.

According to a recent report from the Development Research Center of the State Council, China has maintained its position as the world’s second-largest recipient of foreign investment since 2017. It remains an extremely attractive global investment destination.

In 2022, China recorded a significant increase in foreign direct investment (FDI), reaching 189.1 billion US dollars, marking an 8 percent year-on-year increase. This growth has resulted in China’s share of global FDI rising from 8.2 percent in 2012 to 14.6 percent in 2022. These statistics highlight China’s ongoing efforts to welcome and support foreign investors in its rapidly growing economy.