China’s MOFCOM launched a plan to liberalize services, expanding pilot tasks and cities to boost foreign investment and align internationally.
Key Points
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On April 18, 2025, China’s Ministry of Commerce (MOFCOM) launched a comprehensive Work Plan to further open its service sector, enhancing market access and foreign investment. This initiative includes 155 pilot tasks across 14 areas, expanding the number of pilot cities and focusing on sectors like telecommunications, finance, healthcare, and tourism, aiming to align with international trade standards.
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Since the program began in 2015, China has introduced over 1,300 pilot tasks in regions, attracting foreign direct investment worth RMB 293.2 billion (US$40.2 billion) by 2024. The pilot zones offer a stable policy landscape and improved transparency for foreign enterprises. Sectors such as healthcare and telecommunications have notably benefited, with increased foreign participation and lifted caps on foreign investments.
- These pilot programs signify China’s cautious yet strategic reform trajectory in liberalizing its traditionally regulated economy. By starting with pilot initiatives in selected cities, China tests and refines policies before broader implementation, reflecting a phased approach to economic transformation that optimizes both domestic growth and international economic participation.
On April 18, 2025, China’s Ministry of Commerce (MOFCOM) unveiled a comprehensive Work Plan for accelerating the liberalization of its service sector. The plan marks a pivotal step in attracting foreign investment and aims to enhance market access while aligning with international standards. Building on previous reforms initiated since 2015, the plan introduces 155 pilot tasks within 14 key areas, including telecommunications, finance, healthcare, and tourism. It also expands the number of pilot cities across the nation. This initiative reflects China’s strategy of phased, cautious reforms, which begins with small-scale pilots in select regions before wider implementation if successful.
Historically, China’s service sector has been one of the most regulated areas of its economy. Since 2015, eleven regions including Beijing and Shanghai have embarked on various batches of pilot tasks leading to over 1,300 initiatives targeting critical industries. These pilot zones collectively absorbed RMB 293.2 billion (approximately US$40.2 billion) in foreign direct investment in 2024, accounting for roughly half of China’s total FDI in the service industry. They provide a stable policy environment, improved transparency, and a variety of business opportunities for foreign companies.
Significant progress is evident, particularly in the healthcare and telecommunications sectors. In healthcare, policy reforms have encouraged the development of foreign-invested medical institutions and the participation of overseas medical professionals. This has led to the establishment of over 150 joint or wholly-owned foreign medical facilities and the involvement of more than 1,500 foreign medical personnel on short-term assignments in China. Telecommunications reforms have lifted equity caps in some value-added services, allowing greater foreign participation. Notable enterprises like Deutsche Telekom and Siemens have recently been granted approvals to partake in these pilot programs.
These initiatives not only aim to transform China’s service industry but also signal China’s intent to engage more with global economic standards, thereby cementing its role in international trade and investment. As these pilot programs demonstrate efficacy and efficiency, they serve as a blueprint for broader national reforms, potentially paving the way for more comprehensive liberalization of China’s tightly controlled service sector.
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