Chinese Ministry of Commerce data shows that foreign investment in China has dropped over the first 11 months of this year. However, investment from the Middle East may become a new area for growth.

A pilot program allowing the establishment of wholly foreign-owned hospitals in nine Chinese cities offers new opportunities for international investors, but it also comes with specific restrictions and requirements, balancing the drive for foreign capital with the protection of sensitive medical practices and data.

Earlier this month, the Ministry of Commerce (MOFCOM) and five other agencies jointly released the revised Administrative Measures for Strategic Investment by Foreign Investors in Public Companies. The revision reflects China's ongoing efforts to attract foreign capital while maintaining control over national security and other interests.

The Biden administration's recent move to restrict outbound investments to China has prompted swift condemnation from Beijing, which characterizes the measures as discriminatory and detrimental to global economic cooperation. As both countries grapple with the implications of these restrictions, concerns are mounting over potential retaliation and the broader

Yesterday, the Biden administration issued a Final Rule on outbound investment restrictions, targeted at China and focusing on certain key technologies.

Last week, Beijing opened all manufacturing sectors to foreign investment, and started pilot programs to attract foreign investment in the medical sector. This came at a time when foreign investment continues to find challenges in the market.

Chinese and Italian companies have recently signed agreements in the solar, wind, and EV sectors, following Italian Prime Minister Giorgia Meloni's China trip.