Unpacking the 2025 Action Plan: Stabilizing Foreign Investment for Overseas Brands in China

(Source: https://pltfrm.com.cn)

Introduction

China’s February 2025 Action Plan for Stabilizing Foreign Investment introduces 30+ measures to counter a 15.2% H1 FDI decline, prioritizing high-tech inflows with CNY 127.87 billion already attracted. For overseas brands, this proactive framework signals renewed openness, potentially reversing trends and injecting CNY 1 trillion in capital. Discover how to leverage these policies for market access and operational ease.

1. Market Access Expansions

The plan trims the Negative List to 29 sectors, liberalizing telecom and healthcare.

1.1 Sector Liberalizations

Encouraged Fields: Target manufacturing upgrades with zero-ratio caps, filing via MOFCOM for instant approvals. This accelerates entry, with 20% faster setups reported. Overseas brands in EVs should prioritize pilot zones like Shenzhen. Pilot Zone Benefits: Access free-trade perks like zero tariffs on re-exports, boosting competitiveness.

1.2 Filing Optimizations

Digital Portals: Use the national platform for self-assessments, cutting paperwork by 50%.

2. Financial Support Measures

Domestic loans for equity and R&D grants up to CNY 10 million per project.

2.1 Loan Facilitations

RMB Borrowing: Secure funding without forex, up to 80% project costs via policy banks. H1 2025 saw 30% uptake in tech. Grant Applications: Submit innovation plans to MIIT, with matching funds for green tech.

2.2 Repatriation Eases

Profit Outflows: Streamlined SAFE nods for dividends over CNY 100 million annually.

3. Operational Facilitations

Visa extensions and talent importation for foreign executives.

3.1 Talent Policies

Work Permit Fast-Tracks: 15-day processing for high-skill roles, waiving quotas in priority sectors. Spousal Support: Family reunification visas tied to employment.

3.2 Logistics Incentives

Bonded Enhancements: Expanded zones for duty-free imports, saving 15% on supply chains.

4. IP and Dispute Resolutions

Dedicated courts and enforcement boosts for foreign IP.

4.1 Protection Frameworks

Rapid Adjudication: IP tribunals resolving cases in 180 days, with 90% enforcement rates. Training Programs: Subsidized sessions on local filings.

4.2 Grievance Channels

Hotline Access: 24/7 support for investment disputes.

Case Study: Swedish Biotech Firm’s Plan-Powered Entry

Swedish innovator BioNord AB, eyeing oncology tools, utilized the 2025 Action Plan to enter via a Shanghai pilot, securing CNY 15 million R&D grants and Negative List exemptions. This fast-tracked their JV launch, yielding CNY 200 million in partnerships by Q3—exemplifying policy leverage for life sciences overseas brands.

Conclusion

The 2025 Action Plan reenergizes foreign investment, offering overseas brands tailored incentives to anchor in China’s innovation hub. With over a decade as a professional advertising agency in China localization, PLTFRM aligns your strategy to these opportunities for accelerated growth.

PLTFRM is an international brand consulting agency that works with companies such as Red, TikTok, Tmall, Baidu, and other well-known Chinese internet e-commerce platforms. Contact us, and we will help you find the best China e-commerce platform for you. Search PLTFRM for a free consultation!

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