China is expanding pilot programs to further open up its service sector to foreign investment to boost economic stability in a bid to counter an "intensifying backdrop global unilateralism and protectionism," officials said at a press conference on Monday.China's State Council officials said the country has approved 11 provinces and cities for service sector liberalization trials since 2015.
These pilots have eased market access and expanded institutional openness in rules, standards and management.
Now, nine additional cities like Dalian and Ningbo will join the initiative.Even as the US's latest "reciprocal" tariffs disrupt multilateral systems and supply chains, China will continue its work to accelerate the country's opening-up, including in the services sector, to respond to growing global trade fragmentation, said China's Vice Commerce Minister Ling Ji.The government plan outlines 155 pilot tasks across telecommunications, finance, healthcare, culture and tourism.
This includes lifting foreign equity caps in mobile application stores, allowing foreign doctors to establish clinics and allowing foreign-invested travel agencies to operate outbound tourism services in China.In the financial sector, China will enhance support for multinational companies' cross-border investment and financing by leveraging the unified renminbi and foreign currency bank account system to simplify trade and investment settlements, said Wang Xin, the director of research bureau of the People's Bank of China.The service industry remains China's primary magnet for foreign investment, accounting for over 70 percent of total inbound capital in the first quarter of 2025, according to Commerce Ministry data, as reported by Securities Times.China eliminated all foreign investment restrictions in the manufacturing sector in 2024 and is progressively lowering market entry barriers for the service industry. The country is fast-tracking service sector opening-up, focusing on market access, manufacturing-service integration and openness-driven reforms. With the enormous growth potential and huge market for service consumption, the market requires expanded high-quality service provision and greater openness, said Ling.