China commits to equal treatment for foreign firms to spur investment

China announced on Monday that it would treat foreign and domestic companies equally. This move aims to boost investment levels and attract more businesses with valuable knowledge and experience, as reported by Reuters.

"We will provide guarantees of full equality, so more foreign firms can invest in China calmly and with confidence," announced Deputy Trade Minister Guo Tingting at the Chinese Development Forum in Beijing. However, the minister did not detail what these guarantees would entail, according to Reuters.

As the agency remembers, foreign entrepreneurs have long voiced their grievances over restricted access to China's vast market. Additionally, several countries have raised concerns about Beijing's practices considered "economic coercion".

In reaction, numerous companies have contemplated relocating parts of their operations outside of China. This, along with various other factors, led to an approximately 8 per cent decrease in foreign direct investments in China last year.

"A significant portion of our Chamber’s members have complained about unequal treatment compared to local companies," the head of the European Chamber of Commerce in China, Jens Eskelund, told the agency. He explained that this was evident in issues like uneven access to government contracts and the market. "The true sign of equal treatment will be when our members report no longer facing such barriers," he added.

Adding to the reluctance to operate in China, according to Reuters, are geopolitical tensions, notably between Beijing and Washington.