China's Ministry of Commerce (MOFCOM) announced its 20-point “action plan” on Wednesday that “stabilizes foreign investment.” This is an unspoken recognition and unfair trade policy that the Tartling economy of the communist state desperately needs the return of foreign investors, scared by Dictator XI Jingpin's authoritarian tactics.
MOFCOM's plan of action was drafted with the support of the National Development and Reform Committee, a senior member of the State Affairs Committee. Established Streamlines the economic plan in 2003. As the Council of State is effectively a cabinet for Xi Jinping, the new plan of action is roughly equivalent to the policy documents of cabinet-level agencies.
China's state-run Global Times summary Wednesday's plan to stabilize foreign investment:
Within this plan, the plan encourages foreign companies to invest in equities in China and guide high quality foreign capital towards long-term investments in publicly listed Chinese companies.
China will use domestic loans for stock investments by removing restrictions, encourage multinational companies to establish investment companies, and facilitate foreign investors to merge and acquire in China I'll allow it.
According to some experts, these measures will expand channels of foreign investment, increase flexibility and support the country's large-scale investments.
Xi's mouthpiece promotes the action plan, a bold step in “continuous efforts to promote high-level opening,” as Professor Xi Junyang, professor of Finance at Shanghai Finance University, said. did.
“Open Up” was actually the strategy of Xi's predecessor, Deng Xiaoping. He worked relentlessly to minimize history books, casting himself as the most consequential leader since Mao Zedong until the start of China's economy. Crumble The real estate crisis that wiped out billions of dollars worth after the triple shock of the Uhan coronavirus pandemic, and Xi's trade war with the United States.
The suspicious death of Prime Minister Li Kekian in 2023 eliminated popular rivals that many Chinese viewed as far superior students of Den's philosophy. The boldest critics questioned loudly whether China was not good at taking on Li instead of XI.
“Open Up” suddenly became a hot topic after XI's man disease coronavirus lockdown and regulatory attacks on foreign companies made foreign investors reluctant to drop large amounts of money on China. Chinese government data release Last week, it was shown that foreign direct investment plunged at an astounding 99% over the past three years, reaching its highest low in four years in January 2025.
“The decline is narrower than last year, but it is still on a downward trend,” Deputy Minister Lin Ji said. Recognised At a press conference last Thursday, he announced the debut of the 20-point action plan that was unfolding this week.
One of China's challenges in regaining direct foreign investment is that the looming real estate disaster has now been pushing for much of a decade and dramatically cuts domestic consumer spending That's what caused it. This has made the Chinese market less valuable to foreign investors, a calculation that a 20-point action plan aims to adjust when measured against the costs and risks of investing there.
The early response to China's big plays against more foreign capital from overseas was rather calm. China's state media provided coverage of obsessive and winning the announcement, but reports from foreign media were stuffed at best. For now, at least for now, fears about the fierce trade war between China and the US seem to overshadow enthusiasm for foreign companies ultimately agreeing to fully own the capital they send to China. .
