Beijing is launching a package of measures to attract back foreign capital. Companies will get faster permits, better taxes, cheaper land and export support. The country has added more than 24,000 new businesses in just five months.

China has introduced a new set of policies to boost reinvestment by foreign firms. Seven key government bodies including the National Development and Reform Commission (NDRC), the Ministry of Finance, the Ministry of Commerce and the People's Bank of China have issued a joint document to facilitate investors' return and accelerate their expansion.

According to NDRC officials, foreign companies can look forward to simplified start-ups, better access to finance, flexible land lease options and more support for project implementation. In addition, pilot programs for reporting investment information and new methods for assessing the benefits of foreign capital are expected to enhance transparency and efficiency.

According to Liu Yue, deputy director of the NDRC's Institute for International Economic Research, central-local government linkages and coordination of the demand and supply sides play a key role.

On the demand side, a boom in equipment upgrades and mass replacement of obsolete appliances is helping to create new business opportunities. Moreover, China's export performance is opening the door for foreign and domestic firms to expand into global markets.

On the supply side, Liu stressed the importance of deeper cooperation between foreign and Chinese companies. She cited the example of an American car manufacturer that has developed an intelligent driving system with a Chinese partner. This has subsequently appeared in a vehicle that has quickly gained popularity in the US.

Statistics from the Ministry of Commerce show growing investor confidence: over 24,000 new foreign-funded enterprises were established in China in the first five months of 2025 - up 10.4 % year-on-year. High-tech industries play a key role, accounting for more than 30 % of total investment.

CMG