China's 2025 Action Plan to Stabilize Foreign Investment

China's State Council, the highest legislative body, released China’s 2025 Action Plan to Stabilize Foreign Investment February 19, 2025. The plan introduces measures to expand market access, enhance regulatory transparency, and support foreign enterprises, including medical device manufacturers.

Businesses entering or expanding in China will be encouraged by the broader messaging and expressions of support for operations of foreign companies in China. More detail about the contents of the announcement follows.

Key Highlights of the 2025 Action Plan

Highlight 1: Sending a Positive Signal for Further Opening Up

As of the end of 2024, cumulative foreign investment in China had established more than 123,900 enterprises, with actual foreign investment reaching 20.6 trillion RMB. The Action Plan sends a positive signal for further opening up, proposing measures such as accelerating the pilot work of the national comprehensive pilot zones for expanding services sector openness, further reducing the number of items on the negative list for market access, and enhancing the outward-oriented economic development level of national economic and technological development zones.

Highlight 2: Formation of “1 + N” stabilizing foreign investment policy “combination punch”

The relevant person in charge of the National Development and Reform Commission (NDRC) said that it will work with relevant departments to proactively buttress the international high-standard economic and trade rules in seven areas, such as property rights protection, industrial subsidies, environmental standards, labor protection, government procurement, e-commerce and finance, and to realize the compatibility of the rules, regulations, management and standards; and to push for the expansion of independent opening up in the commodities market, the services market, the capital market, the labor market, and four other markets in an orderly manner, as well as to expanding unilateral opening up to the least developed countries.

In the next step, various departments will also promote the introduction of a number of supporting policies and documents, forming a “1+N” “combined fist” of policies to stabilize foreign investment.

Highlight 3: New Edition of the "Catalogue for Encouraging Foreign Investment" to Be Released Soon

The person in charge of the National Development and Reform Commission introduced that the relevant departments will soon release the 2025 edition of the "Catalogue for Encouraging Foreign Investment" in accordance with procedures. The new catalogue will focus on increasing items in advanced manufacturing, modern services, high-tech industries, energy conservation, and environmental protection. It will also encourage foreign investment in central, western, and northeastern China. Moreover, the National Development and Reform Commission has initiated work on formulating policies to encourage foreign-funded enterprises to reinvest in China and on compiling the "FAQs on Foreign Investment in China."

Highlight 4: Expansion of Openness in Value-Added Telecommunications Business

The Action Plan proposes expanding pilot projects for opening up in telecommunications, medical care, and education. By the end of 2024, 2,343 foreign-funded enterprises had been approved to operate telecommunications businesses in China, offering more choices and differentiated services to telecommunications users.

In 2024, the Ministry of Industry and Information Technology, together with relevant departments, formulated the "Notice on Carrying Out Pilot Work for Expanding Openness in Value-Added Telecommunications Business," clearly stating that in four regions—Beijing, Shanghai, Hainan, and Shenzhen—the foreign equity ratio restrictions on several businesses, including Internet data centers, will be lifted. Currently, dozens of foreign-funded enterprises are actively applying to participate.

Highlight 5: Creating a Market-Oriented, Law-Based, and International Business Environment

Zhou Weijun, director of the Credit Supervision Department of the State Administration for Market Regulation, stated that in 2025, the Administration will, in accordance with the requirements of the foreign investment stabilization action plan, promote high-level opening up and create a market-oriented, law-based, and international business environment.

Impacts and Recommendations for Overseas Manufacturers

The Action Plan carries several practical implications for international medical device manufacturers and other overseas suppliers.

Market Access

The new plan further relaxes restrictions on foreign capital entry, providing a broader space for overseas medical device manufacturers to enter the Chinese market. Enterprises should actively assess whether their products meet the needs and standards of the Chinese market and make early preparations for market access.

Investment Promotion

The government has increased support for foreign-funded enterprises, including tax incentives and financial assistance. Enterprises can use these policies to reduce investment costs and increase returns.

Service Guarantee

The new plan emphasizes the service guarantee for foreign-funded enterprises, including financial support and facilitation of personnel exchanges. Enterprises can make full use of these facilitation measures to improve operational efficiency.

Compliance Requirements

Despite the policy relaxation, enterprises must still comply with relevant Chinese laws and standards. It is recommended that enterprises strengthen cooperation with professional consulting agencies to ensure compliance.

Market Expansion

With the increasing demand for high-end medical devices in the Chinese market, enterprises can take advantage of the opportunities brought by the new plan to expand their product lines and meet market demand.

Final Thoughts

The "2025 Action Plan to Stabilize Foreign Investment" offers numerous policy support and facilitation measures for foreign-funded enterprises in the Chinese market. International manufacturers will be encouraged because the messaging from the highest levels of government is positive for further market access initiatives for entry to and operation in the Chinese market.

Cisema, as a professional regulatory consulting company, will continue to monitor policy developments and provide the latest policy interpretations and compliance recommendations to help you better grasp the opportunities in the Chinese market.

Further Information

See how Cisema supports overseas medical devices manufacturers with regulatory strategy and compliance planning in China.

References

Read the original Chinese government announcement about 2025 action plan for stabilizing foreign investment.