China opens its manufacturing and healthcare sectors to foreign investment

China will fully open its manufacturing and health sector to foreign investments in an effort to revive the world’s second-largest economy

China will fully open its manufacturing sector to foreign investments and is also allowing more room for overseas capital in its health sector, adding to efforts to revive the world’s second-largest economy.

The Chinese flag flies outside a commercial building in Shenzhen, China, on Tuesday, July 2, 2024. (Raul Ariano/Bloomberg)

Beijing will remove the last remaining limits on investments from other countries in the manufacturing sector from Nov. 1 and cut its list of areas that are restricted for foreign investors, according to a statement from the National Development and Reform Commission posted on Sunday. The restrictions to be dropped are relatively minor, such as requirements for Chinese majority control of printing factories and a prohibition on investment in production of Chinese herbal medication.

The government pledged to promote the expansion and opening up of the service industry and encourage overseas investment access in that sector, the NDRC said. Authorities are studying potential policy revisions, with one of the key directions being to foster further foreign investment into services.

Separately, China also announced a slew of policies to further open up its health care sector. Foreign capital will be allowed to engage in the development and application of technologies covering stem cells, gene diagnosis and treatment in the pilot free trade zones in Beijing, Shanghai, Guangdong and Hainan, according to a statement posted on the website of the Ministry of Commerce. All products that have been registered, marketed and approved for production can then be used nationwide.

The government will also allows the setup of wholly foreign-owned hospitals in Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen and Hainan island, according to the statement. However, the acquisition of public hospitals and facilities practicing traditional Chinese medicine are still not permitted, it added. The new policy takes effect immediately.