China unlocks further potential for foreign investors

Editor's note: Kamal Uddin Mazumder, a special commentator on current affairs for CGTN, is a banker from Bangladesh and also a strategic and global economic affairs analyst. The article reflects the author's opinions and not necessarily the views of CGTN.

Lifting full foreign investment access restrictions in the manufacturing sector, with effect from November 1, and allowing wholly foreign-owned hospitals in nine Chinese major cities – including Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen and throughout the island of Hainan – highlight China's wider opening-up and more market access opportunities in the manufacturing and healthcare sectors. They help promote advanced manufacturing and high-tech fields, expanding traditional and emerging industries, and developing and modernizing the healthcare system.

It not only improves the quality of medical services for efficiency and provides a high-quality innovative medical sector and a high-standard healthy lifestyle for people, but also creates more opportunities for foreign capital development in biotech, telemedicine and health training exchanges. Foreign-invested enterprises can develop and apply technologies related to human stem cells and gene diagnoses in pilot free-trade zones in Beijing, Shanghai, Guangdong, as well as Hainan's free trade port. 

Both moves are historic and pave the way for fair competition in the manufacturing and health sectors by drawing in more foreign capital and expanding healthcare services to cater for individual needs, overcome market barriers, bring in innovation, ensure a fair disbursement of health services throughout the country and maximize the potential of the healthcare and elderly care sectors.

To navigate healthcare challenges, and unlock the potential of the healthcare market while boosting confidence in manufacturing for industrial growth, these are imperative for long-term high-quality economic development as China's diversified market vitality and quality of trade and services through economic and social transformation will be continuously gaining momentum.

The National Development and Reform Commission will work with the Ministry of Commerce, other departments, and regions to build up a mechanism to implement the negative list. This will ensure that the plan is comprehensive and well-coordinated.

Many people, businesses and health experts have given their positive feedback as China's trade governance structure in manufacturing and healthcare capabilities has effectively been modernizing and improving, driving pertinent institutional improvements in approval, reform, investment, and regulation. These should lead to an increase in high-quality foreign investment in the industrial and healthcare sectors and improve China's connection with international companies.

For example, in search of cooperation opportunities, a German business delegation visited Chongqing City Vocational College, China, last week. Seeing the potential for a bright commercial future in China, the delegation signed several agreements with the city, focusing on modern manufacturing and vocational education. This effectively demonstrates how Western corporations have profited from the favorable business climate for high-end production and China's highly skilled labor force,

With China falling in line with market ideas for new, high-quality labor forces, particularly the use of industrial robots and artificial intelligence in high-end manufacturing completely free of recent restrictions, foreign investors will be more confident in China's manufacturing sector. Investors are drawn to the unique goods and services that Chinese entrepreneurs have produced so quickly.

Chinese manufacturing companies and businesses gain from a more robust labor market while developing strong supply chain clusters and manufacturing capabilities, while international companies benefit from reduced prices, superior quality, and faster turnaround times. China's manufacturing industry remains competitive globally, fostering full openness and increased foreign collaboration.

Meanwhile, China's appreciable actions demonstrate its will to consistently advance high-quality opening-up through tangible steps, which will also support the growth of the country's manufacturing and healthcare sectors. These actions also show foreign companies' full faith in the Chinese manufacturing industry and China's ongoing transition toward inclusivity, which has allowed it to maintain its top position in the world economy.

Since China is currently leading the world in the production of technological goods, including electric cars, green products, and solar panels, among many other products, the most recent zero-restriction measures will unlock even more potential in the manufacturing sectors, support supply chain stability and global growth, and be a catalyzer to achieve a national GDP growth rate of 5 percent in 2024.

China has always adhered to advancing quality opening-up via sound policies and advancements and has welcomed high-quality foreign investment, despite the U.S. and some other Western countries hyping the so-called decoupling from China and asserting that foreign businesses are not treated fairly in China.

In reality, some Western countries, including the U.S. and Canada are practicing decoupling in the name of their alleged national security and overcapacity hype to prevent Chinese businesses from their markets which is clearly abrupt and irrational trade protectionism. But China is poised to usher in a new age of exciting inventions and capabilities that will benefit both China and the rest of the globe, thanks to its openness to international investment such as in both manufacturing and the health care sectors.

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