As Asia's greatest economy works to modernize and fortify its industrial chains, China promised on Monday that it would treat foreign businesses equally with their domestic counterparts in an effort to draw in more foreign capital, collaboration, and expertise.
Guo Tingting, the Vice Commerce Minister, said at the China Development Forum held in Beijing that China will firmly ensure national treatment for international enterprises, allowing more foreign firms to make investments in China with peace of mind and confidence.
Guo did not give detailed information regarding China's plans to ensure national treatment, or equal treatment of foreigners and locals in accordance with World Trade Organization principles.
Western businesses have long complained about unfair access to China, a sizable consumer market and major worldwide supplier of components and raw materials. Western governments have voiced concerns about economic coercion, and businesses have thought about shifting their operations and supply chains away from China in order to reduce risk.
A wider anti-espionage law that China introduced, exit restrictions, and raids on consultancies and due diligence companies have all served to further restrict inflows of foreign capital. Last year, there was an 8% decline in foreign direct investment.
Investor mood has also been impacted by geopolitical conflict, most notably with the US, on a variety of concerns, including the United States' fear that Chinese military capabilities could be enhanced by the use of American chips and AI technologies.
China has responded by intensifying its attempts to allay the worries of international investors, promising to further expand entry into its markets, and guaranteeing to uphold the rights of foreign businesses.
Guo stated that China will steadfastly defend a multilateral trade system with the World Trade Organization at its center, as well as continue opening up high-level sectors of industry and finance and generating new market opportunities.
On Sunday, Premier Li Qiang declared that China will keep up its efforts to create a favorable business climate and to invite foreign companies to invest in the nation.
ZF Group's executive board member Stephen von Schuckmann, who is in charge of the automobile supplier's battery-drive business, said that the company is dedicated to China, which is the world leader in the manufacture and sales of electric vehicles.
Since the weekend, more than 100 international executives and investors, including those from Apple, Siemens, and other firms with large supply chains in China, have been present at the annual China Development Forum.
During the forum on Monday, Minister of Industry and Information Technology Jin Zhuanglong declared that China would completely remove barriers to foreign investment in its manufacturing sector and expand its comprehensive cooperation with companies worldwide.
The second-biggest economy in the world has pledged to improve its manufacturing supply chains via innovation and the experience of international businesses in order to bolster the independence of its industrial sector in the face of US-led restrictions on high-technology exports to China.
According to Jin, China would actively support the establishment of R&D centers by foreign-invested businesses and the thorough integration of scientific, technological, and industrial innovation.
China set a 5% annual economic growth target earlier this month and pledged to change the nation's development model to counteract the effects of a protracted real estate crisis, massive local government debt, and sluggish consumer demand.
According to Kristalina Georgieva, managing director of the International Monetary Fund, China is faced with a decision on whether to continue with its current policies or change them to usher in a new age of high-quality growth.