Regulation Active Policy

2025 Action Plan for Stabilising Foreign Investment

Published: July 1, 2025

Executive Summary

China's State Council released a comprehensive 20-measure action plan in July 2025 to stabilize and attract foreign direct investment. The plan includes pilot openings in telecom and biotech, streamlined cross-border M&A rules, visa facilitation measures, and a groundbreaking provision allowing foreign-invested enterprises to access domestic loans for equity investment.

Key Points

1

Pilot zones established for value-added telecom services, biotech R&D, and wholly foreign-owned hospitals

2

Cross-border share swaps for M&A simplified — reducing approval complexity for foreign acquirers

3

Mutual visa exemption negotiations underway with key trading partners to facilitate executive travel

4

Foreign-invested companies now permitted to use domestic loans for equity investment — a significant capital access reform

5

20 total measures covering market access, regulatory streamlining, talent mobility, and financial services

6

Plan remains active through 2026 with ongoing implementation across multiple government agencies