As part of China's commitment to expanding opening up and promote free trade, the country has introduced a host of new policies to lift restrictions on foreign investment (FI), especially in the manufacturing and medical sectors.

Zero restrictions on FI in manufacturing

Restrictions on foreign investment in the manufacturing sector will be lifted, according to the 2024 negative list for foreign investment access.

The new list, released by the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOC), effective on November 1, reduces the number of restrictions from 31 to 29, achieving zero restrictions in the manufacturing sector.

An NDRC official emphasized that this move is crucial for establishing a higher-level open economic system. The NDRC will continue to collaborate with the MOC and other relevant departments to ensure effective implementation of the new measures.

"The removal of foreign investment access restrictions in the manufacturing sector is an important measure to build a modern industrial system, which will help China participate in the global industrial division and cooperation at a deeper level, and build a more open and resilient industrial chain and supply chain," an MOC official said during a briefing on the policy.

Introducing wholly-owned foreign hospitals

In a significant step for the healthcare sector, China will allow wholly-owned foreign hospitals to establish operations in the major cities of Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou and Shenzhen, as well as the entire island of Hainan.

The detailed guidelines for setting up such hospitals will be released at a later date, according to a statement released by the MOC, the National Health Commission and the National Medical Products Administration.

In addition, foreign-invested enterprises will be given the green light to engage in research and development activities related to human stem cells and gene therapies within selected pilot free trade zones in Beijing, Shanghai and Guangdong province, as well as the Hainan Free Trade Port.

Tariff exemptions in Hainan's Boao Lecheng Pilot Zone

To further bolster the healthcare landscape, China will exempt import tariffs and value-added tax for eligible drugs and medical devices in the Boao Lecheng International Medical Tourism Pilot Zone in Hainan province.

This policy, jointly issued by the Ministry of Finance and four other departments, applies to medical institutions, medical education colleges and universities, and pharmaceutical research institutes registered in the zone with independent legal person status.

By broadening the scope of "zero-tariff" goods, this initiative will alleviate the financial burden on patients and stimulate consumption in health-related sectors.

It will also enhance the competitive edge of Hainan's healthcare sector, promote the development of medical technology, equipment and drugs to align with international advanced standards, and support its transformation into a premier medical tourism destination and innovation platform.