Efforts to draw more foreign investment(2)

Equal treatment

Besides providing attractive market prospects, efforts to treat foreign enterprises the same as domestic companies and ensure a level playing field for all participants are also crucial, Jin said.

Domestic and foreign companies engaging in various actions, including large-scale equipment upgrades and government procurement, will be treated equally, according to plans announced at the executive meeting.

According to estimates made by the National Development and Reform Commission, the country's top economic regulator, the scale of the market generated by equipment upgrades is projected to exceed 5 trillion yuan annually.

With the potential to generate substantial returns on investment, the trillion-dollar market presents a significant opportunity for foreign-invested companies looking to expand their presence and tap into China's dynamic business landscape, Jin said.

Several State-owned enterprises in the Shanghai pilot free trade zone have recently procured a batch of Tesla Model Y vehicles for corporate use, marking Tesla's entry into China's government procurement arena.

Shift in advantages

By providing a stable and predictable policy framework, China aims to instill confidence in foreign investors, attract their long-term commitment and facilitate their greater participation in the Chinese market, said Cai Wei, chief strategy officer of KPMG China Advisory.

Amid a complex global economic landscape, China still stands out as a favorable investment destination due to its robust economic fundamentals and growth potential, and investing in China can yield long-term and trend-setting returns for foreign investors, experts said.

In the past, China appealed to foreign investors by primarily relying on its comparative advantages in factor prices such as low labor and production costs, said Gao Lingyun, a researcher at the Institute of World Economics and Politics, affiliated with the Chinese Academy of Social Sciences.

However, as the Chinese market expanded and matured, the country's comparative advantage gradually shifted toward its vast consumer base and growing market opportunities, Gao said.

Today, China's competitive advantage lies not only in its market size but also in its position within the global industrial chain. With a strong emphasis on technological advancement, innovation and industrial upgrading, China has become a key player in various industries, attracting foreign investors seeking to tap into its competitive edge, Gao added.

Foreign businesses operating in China continue to exhibit stable investment expectations and confidence in the country's market. Recent surveys conducted by various commerce chambers reveal that over three-quarters of United States, European and Japanese companies plan to sustain their operations in China, according to the Ministry of Commerce.