Illustration: Chen Xia/GT

Amid a volatile and complex global economic and trade environment, China's adherence to its opening-up policy and the stabilization of foreign investment holds immense importance in the establishment of a more robust and resilient supply chain system. The internationalization of China's manufacturing sector will be boosted in a more open market setting, bringing new vitality and momentum to industrial development.

An executive meeting of the State Council, the cabinet, on Monday reviewed and approved four documents, including the 2024 edition of a set of special administrative measures - a negative list - for foreign investment access, the Xinhua News Agency reported. 

According to the latest negative list, China will relax restrictions on foreign investment further by completely abolishing entry barriers in the manufacturing sector, while accelerating the opening-up of sectors such as telecommunications, education and healthcare.

The lifting of restrictions on foreign investment in the manufacturing sector is an important step toward China's openness in the global capital market and creates additional opportunities and room for foreign companies to thrive in China. 

Anybody who knows anything about China's opening-up efforts could see that the country has been steadfast and consistent in its commitment to ease restrictions on foreign investment access.

Since the establishment of the China (Shanghai) Pilot Free Trade Zone in 2013 and the release of China's first negative list for foreign investment access, the opening-up of China's manufacturing sector has undergone a remarkable evolution. At that time, there were more than 60 items in the manufacturing category. 

In the 2021 version of the negative list for foreign investment access, only two items remained in the manufacturing category. Today, with the release of the 2024 version of the negative list, a milestone has been achieved in China's foreign investment access within the manufacturing sector, sending a positive message to global investors.

This process exemplifies the Chinese government's firm determination and positive attitude toward attracting foreign investment to drive the high-quality development of the manufacturing sector. 

China's manufacturing sector, with its complete range of products and large scale, has deeply integrated into global supply chains and become an important base for the world's manufacturing industry. With the transformation of the Chinese economy, Chinese manufacturers are accelerating high-quality globalized development. In this process, further opening-up policies will support cooperation and communication between domestic and foreign companies, promoting the deeper integration of China's manufacturing sector into global industrial chains and forming closer ties with companies and markets in various economies around the world.

The entry of foreign companies will bring advanced technology and management experience, driving innovation in China's manufacturing sector and facilitating industrial advancement. The high-quality development of China's manufacturing sector is facing the challenge of rising costs of labor, land and other factors of production. 

By embracing greater openness and attracting foreign investment, domestic industries will undergo transformation, enhancing their productivity and innovation capabilities, thereby sustaining their competitive edge on the global stage. This move is pivotal for China's progression up the value chain.

Data released by the Ministry of Commerce showed that the number of newly established foreign-invested enterprises increased significantly in 2023, demonstrating that the attractiveness of the Chinese market to foreign investment remains strong. 

This is not just because of China's large market, complete industrial chain and emphasis on innovation and high-quality development, but also because in terms of industrial policy, China has a series of important emerging development directions.

There is every reason to believe that as China continues its opening-up efforts, its potential in attracting foreign investment will continue to expand in the long term, contributing to a more resilient and high-quality supply chain.