Chinese officials focus on policies to attract more foreign investors

As part of the initiative, the government has lifted all restrictions on manufacturing sector access.

Senior Chinese officials have reiterated the country's commitment to high-level economic opening and efforts to attract more foreign investors, emphasising new policies aimed at making the market more accessible to global firms. 

To further attract foreign investment, the Chinese government has lifted all restrictions on manufacturing sector access and introduced additional measures for other key industries. The State Council recently implemented a 24-point action plan designed to widen market access, grant foreign companies equal participation in government tenders, and streamline international business exchanges.

October brought significant developments in financial sector openness, with BNP Paribas and Volkswagen Financial Services approved to jointly establish a property insurance venture in Beijing, whilst Prudential Financial received permission to set up an insurance asset management firm.

Officials are focusing on creating a business environment that is market-driven, rule-of-law-based, and internationally oriented, said Li Yunze, head of the National Financial Regulatory Administration. Wu Qing, chair of the China Securities Regulatory Commission, added that this approach includes fostering deeper connectivity between domestic and global markets, supporting Chinese firms in listing abroad, and encouraging foreign businesses to explore Chinese opportunities.

Foreign enterprises are showing enthusiasm for these steps, with Generali International Asia's Chief Insurance Officer Pierre Martelly highlighting the appeal of China's growth in electric vehicles, solar energy, and wind power, which are areas where Generali plans to expand. 

Generali acquired a majority stake in Generali China Insurance for $108m, marking what the company calls a long-term investment in China’s insurance sector. Additionally, DP World GCC, a logistics and port services company, has shown interest in strengthening its supply chain involvement within China after investing in the country’s ports and warehousing infrastructure over the past decade.

These moves come as China reports steady economic resilience, with GDP increasing by 4.8% year-on-year in the first three quarters of 2024, reaching $13.4t. This growth, combined with new policies for foreign investment, reflects China's focus on creating a stable and lucrative environment for international investors.