China Unveils Plan to Expand Service Sector, Lifting Restrictions on App Stores and AI Adoption

China has announced a new plan to further open up its service sector to foreign investment, a move that aligns with the government's strategy to bolster economic growth amid ongoing trade tensions with the United States. The plan, released by the commerce ministry on Friday, April 18, outlines several key initiatives aimed at attracting more international investment. One of the most significant steps in this plan is the removal of foreign equity ratio restrictions for app store services. This change is expected to make it easier for foreign tech companies to operate and invest in China's app market, which has been growing rapidly in recent years. The document also extends a pilot program that has been successful in opening up the service sector, adding more cities to the list. This expansion is designed to promote broader economic development and diversification across the country. In addition to app stores, the plan highlights the importance of accelerating the industrial application of artificial intelligence (AI) technology. By fostering this growth, China aims to enhance its technological capabilities and competitiveness in the global market. Foreign investors will now have greater access to China's value-added telecommunications and digital services, which should lead to increased collaboration and innovation in these sectors. The healthcare industry, including medical and health care services, will also see new opportunities for international investment. Financial institutions will be allowed to expand their business scope, with specific measures to support multinational companies that invest or register locally. These companies will be able to conduct cross-border centralized fund operations in yuan, facilitating smoother financial transactions and management. The government will also step up its pilot scheme for the Qualified Foreign Limited Partner (QFLP) program, which has been operational since 2010. The QFLP program allows foreign investors to participate in the private equity market through limited partnership structures, providing a more flexible and accessible investment environment. Furthermore, the plan promotes the participation of both Chinese and foreign commercial banks and insurers in the trading of yuan treasury bond futures. This move is designed to improve risk management and increase the liquidity of the bond market. Overall, these measures reflect China's commitment to fostering a more open and collaborative economic environment, particularly in its service sector. By easing restrictions and enhancing opportunities for foreign investment, China hopes to stimulate economic activity and support its growth objectives.