Willy Wo-Lap Lam
Executive Summary:President Xi Jinping unveiled the “2025 Action Plan to Stabilize Foreign Investment” and met with leading entrepreneurs for the first time in seven years, in an effort to reinvigorate the private sector and court foreign investment.
The plan seeks foreign investment in sectors Beijing sees as strategic, such as biotechnology, telecommunications, education, and healthcare.
Xi’s photo opportunity with industry leaders seems intended to show that the country’s industrial policies are bearing fruit for favored firms who, while nominally private, have deep ties to the party-state.
The leadership of the People’s Republic of China (PRC) has taken advantage of U.S. President Donald Trump’s relatively measured approach to the Chinese Communist Party (CCP) regime by announcing moves to resuscitate pro-market policies. Trump has raised the possibility of a spring tête-à-tête with his counterpart, CCP General Secretary and commander-in-chief Xi Jinping. Washington also is yet to object to the PRC playing some role in ongoing Ukraine peace talks and to boost its influence in the European Union in general (Reuters, February 20; Associated Press, February 25). Additionally, the new President has slapped only a 10 percent tariff on PRC imports—lower than the 25 percent imposed on goods from Canada and Mexico and well below the “60 percent or higher” omnibus rate for PRC exports to the United States that Trump had threatened while running for office (The White House, February 1; CNN, February 4, 2024; USA Customs Clearance, February 10).
Plan to Attract Investment
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