Dear Focus Reader,

This week, China announced over 150 new measures to open its healthcare and finance sectors to foreign business, aiming to revitalize its economy amid slowing domestic consumption and ongoing trade tensions.

The National Development and Reform Commission (NDRC) announced a revised "negative list," reducing the number of industries restricted or prohibited to foreign investors, easing restrictions in sectors such as television production, telecommunications, pharmaceutical online services, and forest seed imports.

In the healthcare sector, China has expanded pilot programs that allow foreign-invested enterprises to work on human stem cell and gene therapy technologies within Free Trade Zones in cities like Beijing, Shanghai, Guangdong, and Hainan. It is also now permitting wholly foreign-owned hospitals in several of those same cities, while easing broader restrictions on foreign investments in hospitals and medical training. At the same time, regulators will streamline the approval process for imported drugs that treat rare diseases.

This national push builds on efforts by local governments like Shanghai, which has introduced major incentives over the last year to attract foreign firms, especially in tech. The city launched a $13.8 billion fund for AI, biomedicine, and chips, and offers subsidies and streamlined policies through its Free Trade Zone.

While foreign companies welcome the gestures, many remain cautious after years of regulatory unpredictability, a slower-than-expected post-COVID recovery, and ongoing uncertainty surrounding U.S.-China trade policies. Some firms are seeking tariff exemptions or restructuring their operations in Asia to reduce exposure, balancing interest in China's market with a growing need for resilience.

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