By bigbreakingwire 
China has unveiled a comprehensive plan to attract foreign investment and stimulate economic growth. The strategy focuses on removing restrictions, expanding market access, and enhancing financial support for foreign businesses.
Key Measures to Open Up Markets
Manufacturing Sector: China will completely eliminate foreign investment restrictions in its manufacturing industry, creating a more open environment for global businesses.
Service Industry Expansion: The government will broaden pilot programs in telecom, healthcare, and education to welcome more foreign participation.
Biopharmaceutical Sector: Efforts will be made to ensure a smooth and systematic opening up of the biopharmaceutical industry.
Financial Easing for Foreign Firms: China will lift restrictions on domestic loans for foreign investment companies, making it easier for them to secure financing and engage in mergers and acquisitions (M&A).
Supply Chain Strengthening: Measures will be taken to fortify global supply chains and integrate foreign companies into China’s economic ecosystem.
Boosting Economic Confidence and Consumer Spending
The Chinese government is also taking steps to revitalize consumer spending and economic activity:
Lower Fuel Prices: For the first time in 2025, China has reduced gas and diesel prices, a move expected to lower transportation costs and boost spending.
Support for Private Real Estate and SMEs: Small and medium-sized enterprises (SMEs) and the real estate sector will receive stable credit support to enhance financial stability.
Fast-Tracking Innovative Drugs: The approval process for new, cutting-edge medicines will be accelerated to drive advancements in healthcare and pharmaceuticals.
Visa Exemptions: The country is working on mutual visa exemptions to facilitate easier business travel for foreign investors and professionals.
China Unveils Major Reforms to Boost Foreign Investment and Economic Integration
China is ramping up efforts to attract foreign investment with a series of major reforms. The government plans to expand market access, ease financial regulations, and boost AI-driven growth. It will also accelerate negotiations for mutual visa exemption agreements while steadily increasing the number of countries eligible for unilateral visa-free entry.
To further support foreign businesses, China will expand financing channels and allow foreign-invested companies to use domestic loans for equity investment. The country is encouraging foreign investment in key sectors like livestock breeding, feed production, and veterinary drugs. Additionally, clear standards for domestic products in government procurement will be set to ensure fair competition for all enterprises.
China is also calling for a resumption of negotiations on a free trade agreement with Japan and South Korea while advocating for a multilateral trading system under WTO principles. The Chinese commerce minister, after meeting with a Japanese economic delegation, emphasized the need for stronger policy communication and clearer economic security boundaries. Meanwhile, Beijing’s demonstration zone is set to take the lead in opening up the services sector, further reinforcing China’s commitment to global economic integration.
Foreign Investors Show Renewed Interest in Chinese Markets
Global hedge funds have been aggressively increasing their holdings in Chinese stocks, driven by growing confidence in the country’s economy and advancements in artificial intelligence (AI). A report from Goldman Sachs highlights a significant surge in purchases, particularly in technology, consumer discretionary, industrials, and communication services.
Between February 3 and 7, hedge funds made their largest Chinese stock purchases in over four months. Nearly 95% of last week’s investments were in single stocks, while sectors like energy, utilities, and real estate saw sell-offs. As a result, exposure to Chinese equities in Goldman Sachs’ prime brokerage book rose to 7.6%, a significant jump from January levels.
Goldman Sachs Raises Stock Market Forecasts
In response to the positive market momentum, Goldman Sachs has revised its projections for Chinese equities:
The 12-month target for the CSI300 Index has been increased from 4,600 to 4,700.
The forecast for MSCI China has been raised from 75 to 85.
Conclusion
China’s latest reforms mark a significant step toward greater economic openness and investment-friendly policies. By lifting restrictions, easing financial conditions, and enhancing global market integration, the country aims to attract foreign businesses and investors. Meanwhile, the booming AI sector and strong stock market performance indicate renewed confidence in China’s long-term growth prospects.
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