China renews pledge to open markets, level playing field for foreign firms after US trade war deal progress

State Council meeting, chaired by Premier Li Keqiang, credits ‘unique and important role’ foreign firms play in Chinese economic development

China has increased its efforts in recent months to boost foreign investment amid the slowing economy caused largely by the trade war with the United States

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China's Vice-Premier Liu He met US President Donald Trump during the latest trade war negotiations between Beijing and Washington. Photo: Reuters

Published: 10:35am, 17 Oct 2019Updated: 10:51pm, 17 Oct 2019

China’s State Council has reaffirmed its commitment to opening up its markets further and improving the domestic business environment for foreign companies amid the latest trade war truce with the United States.

The top government administrative body, chaired by Premier Li Keqiang, repeated the promise that it would further open up to the rest of the world, while also giving credit to the role foreign firms have played in country’s economic development and guaranteeing to protect overseas companies’ rights and interests.

“Foreign capital plays a unique and important role in China’s economic development. To promote high-quality development and modernisation, we must always attach great importance to the use of foreign capital,” said a statement following Wednesday’s weekly State Council meeting.

The statement broadly outlined China’s efforts in recent months aimed at boosting foreign investment. It also sought to reinforce the government’s commitment to banning forced technology transfer and maintaining a level playing field for foreign companies.

Foreign capital plays a unique and important role in China’s economic development. To promote high-quality development and modernisation, we must always attach great importance to the use of foreign capital

State Council

China’s promise to open up its markets and ensure a level playing field has been called into question by its biggest trading partners, the US and the European Union.

Last week, China’s securities watchdog unveiled the time frame for abolishing foreign ownership restrictions on futures, securities and fund management companies. The deregulation paves the way for foreign institutions to set up wholly-owned units to deal with futures, mutual fund management and securities businesses.