Since early 2025, the focus has moved from “attracting” to “stabilizing” foreign investment. While there have been no major new guiding policies, the emphasis is now on a more coordinated, strategic approach, aligned with China’s broader structural priorities and foreign investors’ long-term commitment to the market.
This trend is evident from high-level central government meetings, exchanges at the local level, and ongoing observation of the policy environment. The most recent annual work conference on foreign investment, held by the Ministry of Commerce in January 2026 provided a clear example of this evolving policy direction. Below are the highlights:
- FDI Decline Now Acknowledged
- Deeper Integration into China’s Economic Strategies
- Explicit Endorsement for Localization
- Shifting From “More FDI” to “Better FDI”
To provide further guidance to our members, we conclude this recent foreign investment policy direction and share our insights. Here is the link to our latest AHK Action Tracker: