China's New 5-Year Plan Targets 'Opening Up'
China has formally launched its 15th Five-Year Plan (2026-2030), stressing a policy of further "opening up" to attract foreign investment and foster entrepreneurship. While the 4.5-5% GDP growth target is its lowest in decades, officials state China has a solid basis to achieve it, with a focus on advanced manufacturing and digital trade.
The "opening up" policy arrives amid a sharp decline in foreign direct investment, which plummeted from a peak of $344.1 billion in 2021 to just $4.5 billion in 2024, the lowest figure since 1991. Foreign firms have cited increasing challenges, including geopolitical tensions and a vaguely worded Counter-Espionage Law that has unnerved the international business community. Despite the drop in capital, the number of new foreign-invested firms is growing, rising 19.1% in 2025 and another 25.5% in January 2026. This indicates continued market entry, but with more cautious, smaller-scale investments compared to previous years. To counter the investment downturn, the plan will further shorten the "negative list" which restricts foreign capital and will open service sectors like telecommunications and biotechnology. The government is also moving to allow wholly foreign-owned hospitals for the first time. The core of the plan is a shift towards "new quality productive forces," moving beyond being the "factory of the world" to prioritizing homegrown innovation. Key sectors targeted for breakthroughs include quantum computing, biomanufacturing, 6G technology, and humanoid robots. A central component is the "AI Plus" initiative, which aims to integrate artificial intelligence across the economy. The government's goal is for the digital economy to account for 12.5% of GDP by 20
