Ku kandziyisiwa · Tsonga

NDRC Briefing: What Foreign Founders Need to Know About China's Economy and Business Environment

China's NDRC outlines economic priorities and policies that affect foreign founders registering and operating companies in China.

Key Takeaways for Foreign Founders

The National Development and Reform Commission (NDRC) held a press conference on October 20 to discuss current economic issues. For foreign founders planning to register a company in China, the briefing signals a continued focus on stabilizing growth, encouraging private investment, and expanding market access. Below is a practical summary of the points most relevant to setting up and running a business in China.

Economic Context: Stability and Opportunities

In the first three quarters, China's GDP grew by 4.6% year-on-year, despite global geopolitical tensions and natural disasters. The NDRC described the economy as “stable, innovative, and resilient.” This stability is relevant for foreign founders because it indicates a predictable environment for business operations and investment.

The NDRC highlighted several areas of rapid innovation: breakthroughs in integrated circuit core technologies, mature process capacity ranking first globally, AI open-source models exceeding 10 billion global downloads, humanoid robots accounting for over 90% of global shipments, and new energy vehicle penetration reaching 53.6%. These sectors may offer opportunities for foreign companies with related technologies or services.

Policy Support for Private Investment

The NDRC emphasized efforts to stimulate private investment, including introducing private capital into major nuclear, hydro, and water conservancy projects. Recently, the NDRC publicly promoted 88 investment projects to private enterprises, with plans to introduce 31.1 billion yuan of private capital. For foreign founders, this suggests growing opportunities to participate in projects, though specific eligibility for foreign-invested enterprises should be verified.

The NDRC also mentioned a “policy + projects + scenarios” approach to break down hidden barriers, strengthen factor guarantees, and open application scenarios. This could mean easier access to resources and markets for foreign-invested companies.

Expanding Domestic Demand: Implications for Business

Domestic demand contributed 74.8% to economic growth in the first three quarters. Retail sales of goods and services grew by 2.6% year-on-year. The NDRC is drafting an implementation plan for expanding domestic demand (2026-2030) and will focus on boosting consumption and effective investment.

For foreign founders, this indicates a large and growing consumer market. The plan includes measures to upgrade commodity consumption (e.g., new energy vehicles, smart products) and expand service consumption (e.g., elderly care, childcare, cultural performances, tourism, sports events). Foreign companies in these sectors may find new opportunities.

In investment, the NDRC will use ultra-long special government bonds and policy financial tools to support social welfare, technological innovation, industrial upgrading, and security. It will also improve the long-term mechanism for private enterprises to participate in major projects. This could facilitate foreign participation in infrastructure and public service projects, subject to regulations.

Developing New Quality Productive Forces: “Adapting to Local Conditions”

The NDRC reiterated the principle of “adapting to local conditions” in developing new quality productive forces. This means that when planning projects, local governments must fully demonstrate that they have the necessary foundations and avoid blind investment. For foreign founders, this suggests that local governments may be more cautious in approving projects, but also more supportive if the project aligns with local strengths.

The NDRC is also standardizing support policies to prevent “involutionary” competition and disorderly investment attraction. This could level the playing field for foreign companies.

Application Scenarios: Opportunities for Pilot Projects

The NDRC, along with relevant departments, launched the first batch of 136 landmark major application scenario projects. These projects aim to accelerate the maturity and application of new technologies and products. For example, smart mining scenarios will activate resources from over 2,800 mines, providing validation space for cloud computing, industrial IoT, intelligent sensing, and unmanned driving.

Foreign founders with technologies in these areas may find opportunities to participate in pilot projects, which can serve as a stepping stone for broader market entry.

What This Means for Company Registration

• Entity choice: The briefing does not specify new entity types, but the emphasis on private investment and market access suggests that foreign-invested enterprises (FIEs) can operate in most sectors, with negative list restrictions applying.
• Registration steps: No new procedures are announced; standard FIE registration with the State Administration for Market Regulation (SAMR) and commerce authorities remains.
• Capital and investment: The push to attract private capital may make it easier to find local partners or investors, but capital requirements for FIEs depend on the industry and location.
• Licenses and compliance: The focus on high-tech and innovative sectors implies that licenses for such activities may be streamlined, but foreign founders should check sector-specific regulations.
• Tax and incentives: No new tax policies are mentioned; however, existing incentives for high-tech enterprises and R&D may apply.

Overall, the NDRC's messages reinforce China's commitment to a stable business environment and openness to foreign investment. Foreign founders should monitor further policy developments, especially the 2026-2030 domestic demand plan and new quality productive forces initiatives.

Call to Action: For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.