China Lifts Restrictions on Foreign Investment in Manufacturing Sector

China has announced that it will lift restrictions on foreign investment in its national manufacturing sector starting November 1.

The move, revealed by the country’s top economic planning body, reflects China's efforts to further open its economy to international investors.

According to a joint statement from the National Development and Reform Commission (NDRC) and the Ministry of Commerce, the 2024 edition of the "Negative List" for foreign investment will reduce the number of restricted sectors from 31 to 29, completely removing all limitations in the manufacturing industry.

An NDRC official emphasized that the release of the new 2024 list is a significant step toward building a more open economic system, aligning with the country's broader goals of higher-level economic liberalization.

In addition to manufacturing, China is also implementing policies to further open the healthcare sector to foreign investment.

Foreign capital will be allowed to engage in the development and application of technologies such as stem cells and gene diagnostics in free trade zones located in Beijing, Shanghai, Guangdong, and Hainan, according to a statement from the Ministry of Commerce.

The government will also permit the establishment of fully foreign-owned hospitals in cities including Beijing, Shanghai, Guangzhou, and Shenzhen, except for facilities practicing traditional Chinese medicine.

The NDRC noted that China is committed to expanding access to its services sector and encouraging foreign investment.

Authorities are currently evaluating potential policy adjustments to further enhance openness and attract global investors.