China's recent 20-point action plan, along with high-level backing for private enterprises, sends a clear signal of the country's intent to attract foreign investment, opening up key sectors like telecom and healthcare, and deepening its integration with global markets, economists said in a recent interview with China Global Television Network (CGTN).
On Wednesday, China's State Council unveiled the 20-point action plan, aimed at stabilizing foreign investment for 2025. The plan includes measures to ease restrictions for foreign companies and expand access to sectors such as culture, education, biomedical, healthcare, and telecommunications.
Earlier this week, Chinese President Xi Jinping met with leading private entrepreneurs, sending a positive message of support for the private sector.
Hong Hao, chief economist at Grow Investment Group, emphasized the pivotal role of private enterprises in China's economy, contributing more than 60 percent of gross domestic product (GDP). However, he pointed out that these enterprises struggled to expand at the necessary pace due to a lack of credit support following the pandemic.
"So, in recent days, we have a top-level conference with private entrepreneurs. And also, we have new policies from the PBOC (People's Bank of China), they're trying to shore up credit support for private enterprises. And then now we have this 20-point detailed plans for them. So I think they're sending out a very strong policy signal to the entrepreneurs from the top, saying that their status in the economy is very important and they're going to receive all the support they are going to get,” Hong said.
The action plan also reflects China's push to welcome foreign investment into sectors like telecommunications, biotechnology, and wholly foreign-owned hospitals. Hong emphasized that these sectors are in vital need of new capital, and that foreign investment could help address these challenges.
"That explains why a very strong move in the telecom sector and also in the healthcare sector today. I think China can benefit from foreign investments in the sense that these are the areas that really need new capital investment. I think right now much of the Chinese capital is still tied up in the property sector and also in the infrastructure area. I think the AI area and also the semiconductor area are [some] of the areas that have received very strong recent attention from the top. And I think this time, we're opening up further, it also welcoming foreign investors to come into these areas. It's also a show of policy signals from the top regarding the support for foreign investment to continue investing in the Chinese economy," Hong said.
In addition to attracting foreign capital into key industries, the Chinese government is looking to expand investment into less developed regions such as central, western, and northeastern China.
Johan Annell, partner at ARC Group, stressed that local governments have a crucial role to play in attracting foreign investment. He suggested that good governance and strong customer relationships are vital for attracting investments.
"One thing is the basic of good governance and companies being there, really seeing that here rules are very well implemented, things just work, and that is one thing. Another is to buy more products from Europe to help make that happen. Seeing that the first step towards getting investments is actually to help companies find customers and collaborations. Once you have sales, that's a very strong reason to actually put manufacturing and also R and D development there. Seeing that you're close to your customers and in one of those clusters where that really pulls investment," Annell said.
Official data released in January showed that China attracted a total of 97.59 billion yuan (about 13.4 billion U.S. dollars) in foreign direct investment (FDI), although this represents a 13.4 percent decline from the previous year.
However, the country saw a significant month-on-month growth of 27.5 percent, with countries like the United Kingdom and South Korea leading the way in FDI growth. Hong explained the factors behind the rise in investment from these countries.
"I think the non-US part of the foreign investment is actually picking up. I think South Korea has been one of the more important foreign investors in China for many years now. And I think last year's pickup also reflects the fact that, the South Korean companies see a better integration of the Chinese economy over the next few years. Regarding to UK, there are many of the manufacturing opportunities being set up here in China, either trying to supply the rest of the world with automobile parts, for example, semiconductors, mid- to lower semiconductor chips, and many other things. So, that is one of the reasons why it's driving up UK business as well," Hong explained.
China's 20-point plan signals support for foreign investment, private sector: economists
China's 20-point plan signals support for foreign investment, private sector: economists
Pakistan's Interior Minister Mohsin Naqvi informed Iran's Ambassador to Pakistan Reza Amiri Moghadam on Monday that preparations for the second phase of talks in Islamabad have been completed, said the Interior Ministry. According to a statement, the minister met with the ambassador to discuss arrangements for the second round of talks, saying that foolproof security arrangements have been in place for visiting foreign delegations.
Yet the prospect of a second round of U.S.-Iran negotiations remains unclear. U.S. forces intercepted and seized an Iranian-flagged cargo ship in the Gulf of Oman, while Tehran has said it currently has no decision to send a negotiating delegation.
Despite the tensions, Pakistan, as a main mediator, continues its efforts to bring the two sides to the table, with other regional countries. On Sunday, U.S. President Donald Trump announced that U.S. negotiators would travel to Islamabad for possible talks with Iran.
He also threatened to"knock out every power plant and every bridge" in Iran if his deal is rejected.
U.S. media reported that Vice President JD Vance would lead the delegation, joined by Trump's special envoy Steve Witkoff and son-in-law Jared Kushner.
However, the Iranian side denied the potential talks in Islamabad. Iran's semi-official Tasnim news agency said Sunday that Iran currently has no decision to send a negotiating delegation, stressing that as long as the U.S. "anti-Iran" naval blockade remains in place, there will be no negotiation with Washington.
Iran's official news agency IRNA said on Sunday that the country has rejected taking part in the second round of peace talks with the United States.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Monday that Iran currently has no plan for the second round of peace negotiations with the United States.
The United States takes actions that are in no way indicative of its seriousness in pursuing a diplomatic process, Baghaei told a weekly press conference, noting that since the ceasefire took effect on April 8, "we have been faced with the breaking of promises and nagging by the United States."
For Hanan Hussein from the global think tank Initiate Futures in Islamabad, despite the heightened tensions, the possibility of the second round of U.S.-Iran talks has not been ruled out, and he believes the negotiations are likely to move forward, though both sides face challenges in aligning expectations.
"I think the talks are going to go ahead. It's just a matter of time until we see them materializing. So, a couple of considerations lead me to that conclusion. First of all, the U.S. naval blockade is meant as a pressure tactic for Iran to come forward for a deal. Whether the deal is acceptable or not would likely be a challenge between compromises on what each side sees as doable concessions. But I think the signaling from the U.S. front, and we see the lead-up in the preparations as well, is something that the U.S. is willing to dial up the pressure, but they want to negotiate from a position of strength. From the U.S. perspective, the naval blockade will kind of suggest or add to that being a position of strength. But I think a key weakness over there is that unless Iran and the U.S. make tangible efforts to coordinate their expectations about what qualifies as a doable, workable, executable deal, any of these pressure tactics can risk upending the kind of trust surplus which both sides need in order to proceed forward, including through Pakistan's mediation," he said.
The two sides held their first round of talks in Islamabad on April 11 and 12 but failed to reach an agreement.
Hussein emphasized Pakistan's critical role as mediator, saying its proximity to both parties allows it to bridge differences and manage external shocks.
"It's critical. So for example, when you talk about a mediator, he has to have favorable proximity to both adverse parties when their positions are polarized. You need to have a country, for example, Pakistan fits the bill on many occasions, for example, when we talk about coordinating expectations with Iran, to have a strategic channel open with Washington allows you to kind of see where the constraints lie from each side's perspective. And I think, on the other front, mediation becomes critical because when we talk about tampering some of the external shocks which rise out of this conflict, it's something which the U.S. and the Iranians themselves cannot necessarily negotiate or bring to the table. I think that's where mediating parties such as Pakistan -- we've seen Egypt and Türkiye hit from the sidelines -- can create this atmosphere of shuttle diplomacy where both sides can communicate proposals, push back and forth without exactly being seen as weak in terms of public diplomacy, because obviously the temperature within the U.S. and Iran is to maintain a strong-arm posture," he said.
"So, I think from that point of view, mediation becomes critical because what happens behind closed doors is this incremental consensus-building process, which keeps diplomacy on the table. And I think, from that point forward, Pakistan's role has been demonstrated as effective over the past couple of weeks. Building on that will require regional consensus, something which allows Pakistan to also filter in the feedback from Gulf powers who've been disproportionately affected into this process. So, it remains a very multivector, and I think the mediation effort fits the bill on that front," he added.
Uncertainty clouds US-Iran talks as Pakistan prepares mediation
