China names healthcare, education, tech as likely venues for more foreign investment

China has promised to widen market access in sectors like healthcare, education and hi-tech, part of a broader effort from the world’s second-largest economy to woo back overseas and private investment and help stabilise the country’s economic growth.

The council, China’s cabinet, also issued a 10-point guideline on optimising national market access on Wednesday, naming it a “key pillar” of the country’s socialist market economy.

“Market access for both domestic and foreign investment should be better aligned, areas opened to foreign investors should be accessible by domestic investors, and thresholds for domestic investors should also apply to foreign investors as long as they do not violate international agreements,” the document read.

“There should be an orderly opening up of service industries not linked to national security or social stability, which would offer higher quality of service when in market competition.”

The guideline “is a response to calls from corporates and wider society,” said Guo Liyan, vice-president of the Academy of Macroeconomic Research at the National Development and Reform Commission, China’s top economic planner. “[It] emphasises policies must be implemented in an effective manner,” she was quoted by state news agency Xinhua as saying.

13:04

What does it mean for the world when Chinese consumers tighten their belts?

What does it mean for the world when Chinese consumers tighten their belts?

The council named “education, health and sports” as qualifying industries “closely tied to people’s livelihoods”, and said access in similar areas like elder care, childcare and disability aid would also be loosened.

“New industries” were also mentioned in the document, specifically deep-sea technology, aerospace, aviation, new energy, artificial intelligence, trusted computing, information security, smart rail and modern agriculture. “Pioneering tech and innovations” and making “digital productions more available” were also emphasised.

Fields related to “national security, lifeline of the national economy, key industries, strategic resources, and major public interests” would be managed in a way that takes social and economic impact into consideration, the council said.

Figures from the Ministry of Commerce show the country’s foreign direct investment dropped 29.1 per cent year-on-year to 498.9 billion yuan (US$69 billion) in the first half of 2024.

China’s gross domestic product grew 4.7 per cent in the second quarter compared to a year earlier – falling short of the annual target of “around 5 per cent” – after recording 5.3 per cent growth in the first quarter.