“[We] encourage foreign investors to set up research and development (R&D) centres in China … and support their participation in major scientific research projects,” the document said, adding that clinical trials and product registrations for listed biopharmaceuticals outside the country would also be made more efficient.

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The document was unveiled amid a series of attempts by Beijing to reinvigorate a sluggish national economy that is still struggling even though the year began with the lifting of pandemic restrictions.

Another list of measures to boost investment from the private sector was published by China’s economic planner in late July, as both private and foreign investment continued to dip.

At a press conference on Monday, Chen Chunjiang, assistant minister of commerce, said that the government was looking for a “new cooperation model in procurements”, and that Beijing would like to encourage and support foreigners who want to invest in “world-leading” Chinese innovation.

Yao Jun, head of planning at the Ministry of Industry and Information Technology, said at the same press conference that the government would continue to push for FDI in areas including “advanced manufacturing” and “energy conservation and environmental protection”. Beijing hopes to encourage more FDI in central-western and northeastern parts of China, he said.

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‘Let it rot’: surviving China's high unemployment and cost of living

‘Let it rot’: surviving China's high unemployment and cost of living

The latest State Council document also said there would be a “fast track” for foreign investors who fulfil certain conditions on the transfer of cross-border data, without specifying further.

“[There will be] efficiency in security reviews for cross-border data transfer and encouragement in the free and secured flow of data,” the document said.

The vague vow comes as groups representing Western business interests in China have long flagged unclear or ambiguous policies that could be open to interpretation and make the country less appealing to investors.

Complicating the matter, Beijing has been introducing new laws in recent years to tighten controls on the transfer of cross-border data, imposing tough penalties for the unauthorised collection, processing, storage or use of data, while adding security reviews for “important” offshore data transfers. Such moves have only heightened concerns among foreign firms operating in a number of Chinese industries.

In the document, the government said it would back foreign companies in receiving more “equal treatment” in “standard-setting” processes and public procurements. The State Council called on local governments to protect foreign businesses’ rights and asked foreign investors to “report” if they believe their business interests have been harmed due to “unfair treatment”.

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A number of foreign chambers said they particularly welcome assurances in policies in encouraging R&D – such as offering preferential tax policies and visas for foreign executives – and advancements in safe cross-border data transfers, as these have been atop the list of major concerns among their members. Yet, many said it would take time to observe how such promises are put into place.

Jens Hildebrandt, executive director and board member of the North China chapter of the German Chamber of Commerce in China, said China’s opening up of “crucial areas” such as telecommunications, public procurements, and pharmaceuticals would be “highly welcomed if implemented”.

The biotech industry – including biopharmaceuticals – has become one of the major battlegrounds amid deteriorating China-US relations, as the US announced an executive order last year calling it a critical technology for review and clearance, raising concerns on prospects of both Chinese and American investments in this area.

With the new government term having kicked off in March, Beijing has identified the boosting of FDI as one of the major pillars in China’s economic recovery.

Despite Beijing’s repeated rhetoric and red-carpet welcoming of prominent foreign business delegations, including Tim Cook from Apple and Elon Musk from Tesla, China has yet to see its FDI numbers rebound.

China’s second-quarter direct investment liabilities – one measurement of FDI – plunged by 87 per cent from the same period last year, to a historical low of US$4.9 billion, according to recent figures by the State Administration of Foreign Exchange.

China’s overall FDI dropped by 2.7 per cent, year on year, to 703.65 billion yuan (US$97 billion) in the first half of 2023, according to data from the Ministry of Commerce in July.

China’s second-quarter gross domestic product grew by only 0.8 per cent from the first quarter, lagging behind market expectations.

Despite welcoming the document, Rachel Tsang, managing director of the British Chamber of Commerce in China, said: “[W]e should also note that British businesses in China have gone through three years of the pandemic, and many of them are still recovering under the current economic environment, concerned about the weak domestic demand. Therefore, rebuilding trust and confidence will still take time.”

And Michael Hart, president of the American Chamber of Commerce in China, said that while he is “heartened” to see the government has publicly recognised the importance of foreign investment, there is still a lack of acknowledgement in addressing the general tone of sentiment towards the US, which he said tends to be fully blamed in Chinese media against the backdrop of geopolitical tensions.

“This shouldn’t be discounted, as our members continue to list poor [US-China] relations as their main concern, and no one wants to invest in a market where they are seen in a poor light,” Hart said.