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China's latest action plan shows it's trying to boost foreign investment amid geopolitical tensions

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China on Feb. 19 published a " 2025 action plan for stabilizing foreign investment" to improve the ability of foreign capital to invest in domestic telecommunication and biotechnology industries.

The document called for clearer standards in government procurement — a major issue for foreign businesses in China .

China 's latest action plan was released around the same time the Commerce Ministry disclosed that foreign direct investment in January fell by 13.4% .

In a relatively rare acknowledgement, Chinese Commerce Ministry officials on Thursday noted the impact of geopolitical tensions on foreign investment, including some companies' decision to diversify away from China . They also pointed out that foreign-invested firms contribute to nearly 7% of employment and around 14% of taxes in the country. Previously, official commentary from the Commerce Ministry about any drop in FDI tended to focus only on how most foreign businesses remained optimistic about long-term prospects in China ..