China to expand biotech, foreign hospital pilots in new investment push

by XIN Yuan

China has unveiled a new package of measures aimed at attracting foreign investment, including plans to expand pilot programs in biotechnology and wholly foreign-owned hospitals.

The plan, jointly issued on Monday by the Ministry of Commerce, the National Development and Reform Commission and the Ministry of Finance, comes as policymakers step up efforts to encourage multinational companies to deepen their presence in the world’s second-largest economy.

Among the most significant measures, authorities said they would accelerate the introduction of rules governing cross-border segmented pharmaceutical production, making it easier for overseas drugmakers to manufacture biologics and chemical medicines in China. Officials will also study expanding pilot opening-up programs in the biotechnology sector and widening the geographic scope of pilot programs allowing wholly foreign-owned hospitals.

The plan also signals further opening of China's services sector. Authorities said they would broaden pilot opening-up programs for vocational training institutions, vocational colleges and selected universities specializing in science, engineering, agriculture and medicine, while supporting further liberalization measures in areas such as the digital economy and healthcare.

Beijing also pledged to ease barriers to foreign acquisitions of Chinese companies. Regulators will revise rules governing foreign mergers and acquisitions, streamline approval procedures and optimize payment requirements. Qualified foreign private-equity investment firms will be allowed to participate as strategic investors in securities offerings by listed companies outside their affiliated industries.

To encourage reinvestment, authorities said they would fully implement tax incentives for overseas investors that use distributed profits for direct investment in China. More reinvestment projects will also be included in national priority foreign-investment programs, expanding access to policy support.

The plan further promises equal treatment for foreign-invested enterprises in areas including government procurement, public bidding and business-support policies, except where national security concerns or specific legal provisions apply. Authorities also said foreign companies should be allowed to participate fully in consumption-boosting initiatives if their products and services meet eligibility requirements.

Official data showed that in 2025, 70,392 new foreign-invested enterprises were established in China, up 19.1% year on year. Actual foreign direct investment totaled 747.7 billion yuan (US$110 billion), with the services sector accounting for 545.1 billion yuan.

The move follows a series of efforts by Beijing over the past year to attract foreign capital, including an updated catalogue of encouraged foreign investment industries and repeated pledges to improve market access for overseas companies. Policymakers have also promoted the "Invest in China" campaign and encouraged multinational firms to expand local production and reinvest earnings in the country.