China Removes All Limitations on Foreign Manufacturing Investments
China is set to remove all restrictions on foreign investment in the manufacturing sector starting November 1. The 2024 update to the negative list for foreign investment access has decreased the number of restrictions from 31 to 29, paving the way for zero restrictions in manufacturing.
TroibNews 
China will remove all limitations on foreign investment in the manufacturing sector starting November 1. The 2024 iteration of the negative list for foreign investment access has reduced restrictions from 31 to 29, aiming for zero restrictions in the manufacturing domain.
Two newly accessible areas for foreign investors include printing publications and applying traditional Chinese medicine processing techniques, as well as producing proprietary confidential prescriptions for Chinese medicine.
The traditional Chinese medicine industry is regarded as a unique “treasure” of the Chinese nation. However, the question remains: is the industry prepared for an influx of foreign investment?
Zhao Deng, a manager from Mayinglong Pharmaceutical Group’s international trade department, expressed that the company welcomes foreign investment into the traditional Chinese medicine sector. He highlighted the company’s confidence in competing with foreign-invested enterprises, citing its 400-year legacy rooted in ancient prescriptions and teachings.
Wang Jinhui, representing Guangxi Golden Throat Group, one of China’s top 50 traditional Chinese medicine firms, stated that the company is open to foreign investors expanding their facilities rather than increasing production within China.
Since 2013, China has established a negative list system in its free trade zones, initiating a gradual process of foreign investment liberalization. Over several years of reforms, China has reached a significant milestone by fully opening the manufacturing sector to foreign investors.
Being the world's leading manufacturing hub, China has always attracted substantial foreign investment. With the removal of all restrictions on foreign investment in the manufacturing sector, what implications does this hold for the economy and future growth?
Experts predict that this initiative will create a "catfish effect" in the industry. "Since there's a catfish in the water, right? It will indeed bring about certain challenges and competition. However, it is also beneficial in that it forces our enterprises to accelerate their pace of innovation, pushing them to improve," commented Cao Zhongxiong, assistant president at the China Development Institute.
According to data from the Chinese Ministry of Commerce, the actual use of foreign capital in the manufacturing sector reached approximately 179 billion yuan in the first nine months of the year, with high-tech manufacturing making up over 77 billion yuan—a 1.5 percent increase compared to the previous year.
Cao underlined that in the pursuit of openness, China aims to create a better and fairer environment for diverse industries and global investments. This approach will enable foreign investment to fully reap the benefits of the Chinese market within a more open framework.
To better accommodate foreign investors, China announced that they will receive equal treatment regarding production factors, licensing, standards, and procurement. Additionally, the country will promote investments in advanced manufacturing, technology, energy, and environmental protection.
Sophie Wagner contributed to this report for TROIB News
Two newly accessible areas for foreign investors include printing publications and applying traditional Chinese medicine processing techniques, as well as producing proprietary confidential prescriptions for Chinese medicine.
The traditional Chinese medicine industry is regarded as a unique “treasure” of the Chinese nation. However, the question remains: is the industry prepared for an influx of foreign investment?
Zhao Deng, a manager from Mayinglong Pharmaceutical Group’s international trade department, expressed that the company welcomes foreign investment into the traditional Chinese medicine sector. He highlighted the company’s confidence in competing with foreign-invested enterprises, citing its 400-year legacy rooted in ancient prescriptions and teachings.
Wang Jinhui, representing Guangxi Golden Throat Group, one of China’s top 50 traditional Chinese medicine firms, stated that the company is open to foreign investors expanding their facilities rather than increasing production within China.
Since 2013, China has established a negative list system in its free trade zones, initiating a gradual process of foreign investment liberalization. Over several years of reforms, China has reached a significant milestone by fully opening the manufacturing sector to foreign investors.
Being the world's leading manufacturing hub, China has always attracted substantial foreign investment. With the removal of all restrictions on foreign investment in the manufacturing sector, what implications does this hold for the economy and future growth?
Experts predict that this initiative will create a "catfish effect" in the industry. "Since there's a catfish in the water, right? It will indeed bring about certain challenges and competition. However, it is also beneficial in that it forces our enterprises to accelerate their pace of innovation, pushing them to improve," commented Cao Zhongxiong, assistant president at the China Development Institute.
According to data from the Chinese Ministry of Commerce, the actual use of foreign capital in the manufacturing sector reached approximately 179 billion yuan in the first nine months of the year, with high-tech manufacturing making up over 77 billion yuan—a 1.5 percent increase compared to the previous year.
Cao underlined that in the pursuit of openness, China aims to create a better and fairer environment for diverse industries and global investments. This approach will enable foreign investment to fully reap the benefits of the Chinese market within a more open framework.
To better accommodate foreign investors, China announced that they will receive equal treatment regarding production factors, licensing, standards, and procurement. Additionally, the country will promote investments in advanced manufacturing, technology, energy, and environmental protection.
Sophie Wagner contributed to this report for TROIB News
