This episode contains segments on:
- China’s actual use of foreign direct investment in the first quarter;
- Guideline for improving cross-border flow of financial data;
- Work plan to accelerate services opening up; and
- Latest developments regarding China’s efforts at opening its healthcare sector to foreign participation
The Chamber is conducting an anonymous survey among members on the US-China trade war. Please fill in the survey before 27th April to influence our advocacy strategy.
Correction: the actual use of FDI in March soared 13.2 per cent compared to last year.
Contact:
We’d love to hear your feedback. Contact us at website@europeanchamber.com.cn.
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Read more:
China Q1 actual use of FDI (MOFCOM)
https://www.mofcom.gov.cn/xwfb/rcxwfb/art/2025/art_1f35955d2f4a4eb28837fe6d262693ea.html
Guideline for improving cross-border flow of financial data
https://english.www.gov.cn/news/202504/18/content_WS6801a02ac6d0868f4e8f1d86.html
Work plan to accelerate services opening up
https://english.www.gov.cn/policies/policywatch/202504/22/content_WS6806d37dc6d0868f4e8f1f16.html
https://wzs.mofcom.gov.cn/zcfb/art/2025/art_869de097dd4640d3bb5e44338bc534b0.html
Latest developments regarding China’s efforts at opening up its healthcare sector to foreign participation
https://english.news.cn/20250421/96229be7b1d14e91adac8fed87cb026f/c.html
Transcript:
RUI: Hello and welcome to China ShortCuts,
MARIANN: the European Chamber’s weekly catchup on China’s business landscape.
RUI: This episode was recorded on 23rd April 2025.
(MUSIC)
RUI: In March, the actual use of foreign direct investment or FDI in China increased year-on-year, which softened the overall fall in FDI utilisation registered in the first quarter.
MARIANN: Data released by the Ministry of Commerce on 18th April showed that the actual use of FDI in March soared 13.9 (Correction: 13.2) per cent compared to last year. This helped offset the ongoing overall fall in the first quarter, which stood at 10.8 per cent year-on-year. This was the mildest rate of year-to-date decline recorded since December 2023. FDI used in the services sector in the first quarter was more than double what was utilised in manufacturing. The Ministry’s statement also specified that the amount of utilised FDI from the European Union rose almost 12 per cent year-on-year, however, no figures were provided for this.
(MUSIC)
RUI: On 17th April, the People’s Bank of China, the National Financial Regulatory Administration and four other departments jointly issued a guideline aimed at improving the cross-border flow of financial data.
MARIANN: The guideline specifies the conditions for cross-border data transfers as well as a list of data items permitted for export. It also lists outbound data transfer scenarios exempt from security assessments and over 60 categories of common financial business scenarios. The European Chamber has been advocating for the facilitation of intra-group data access in the financial industry, and has been urging the Chinese authorities to ensure that data management requirements are clear and allow cross-border intra-group data flows.
(MUSIC)
RUI: On 18th April, the Ministry of Commerce issued a work plan aimed at accelerating the opening up of the services sector. The plan includes 155 pilot tasks in key areas including e-commerce, healthcare, financial services and tourism.
MARIANN: Some of the pilot tasks outlined include attracting foreign financial services companies to provide services for green projects and promoting the development of international factoring services. In pilot zones, foreign-invested travel agencies will be allowed to offer outbound travel services, and the caps on foreign ownership for app stores will be removed. The work plan also expands the list of pilot zones from the previous 11 provinces and cities by adding nine additional cities, including Ningbo and Xiamen.
(MUSIC)
RUI: At a press conference held on 21st April, the National Health Commission said that China now has more than 150 joint venture and wholly foreign-invested medical institutions.
MARIANN: The Commission pointed to the figure to underline the progress made in opening up the healthcare sector. A key development in this regard was that a pilot work plan released last November granted approval to eight cities and one province to allow the establishment of wholly foreign-owned hospitals. A key challenge is the size of the required investment, as the pilot work plan focusses on class-three hospitals only, which have a capacity of 500 beds. Therefore, the most likely beneficiaries of this plan are foreign parties in joint ventures that could now buy out their JV partner and turn an existing hospital into a wholly foreign-owned entity.
Additionally, the Ministry of Commerce’s 18th April work plan included a call for further opening of the healthcare sector to foreign participation. Some of the pilot tasks specified were supporting foreign doctors in opening clinics in China and promoting the establishment of foreign-funded nursing schools.
(MUSIC)
RUI: The recent escalation of tariffs and trade measure between the US and China has far-reaching implications for all foreign companies operating in China. To better understand the impact and refine the Chamber’s advocacy efforts, we have launched an anonymous flash survey among our members.
MARIANN: Invitations have been sent out via email to primary contacts of all European Chamber member companies. Your invaluable insights are crucial in helping us accurately gauge the situation and best serve your interests.
RUI: The survey period is now extended to 27th April. Do not miss this chance to influence our advocacy strategy. Let’s work together to navigate these complex trade dynamics.
(MUSIC)
MARIANN: Thanks for listening, and don’t forget to tune in again next week.
RUI: In the meantime, please find useful links in the episode notes.