China leads the way in poaching foreign investment, hi-tech firms, but will Beijing follow suit?

China's Xi wants market-ready scientific research – and isolates 2 provinces

Xi's visit was followed by a State Council circular on Tuesday that offered new measures aimed at foreign investors and foreigners living in China.

China's cabinet has announced that it will increase the length of visas for foreign managers and experts and their spouses and children from one year to two years.

The National Immigration Administration said on Wednesday that it would extend residence permits for up to five years or even grant permanent residency to foreigners if they meet certain criteria.

China waives re-application requirements for foreign workers working for the same employer if they change jobs or pursue tertiary degrees.

The State Council said it would remove all remaining access restrictions restricting foreign investment in the manufacturing sector and launch pilot programs to allow foreign investors access to medical and value-added telecommunications services.

It pledged to open up its financial sector, pledging to tackle areas often criticized by foreign companies, such as data flows and participation in government procurement.

However, the foreign business community in China has long demanded action rather than lip service.

“We are pleased to see the Chinese government's continued efforts to focus on matters of importance to foreign investment companies, including clear standards for cross-border data transfers. Companies that make government procurement and the visa and citizenship approval process more efficient,” the American Chamber of Commerce in Shanghai said Wednesday.

The chamber added that it looks forward to seeing more details on how these measures will be implemented and working with government departments to help foreign companies benefit from their exposure.

„It's a definite step,” said a former manager who left Shanghai after his visa expired late last year.

However, he added, „Such documents from Beijing contain many steps, but few steps come with details, and the long wait will always continue despite promises.”

Foreign direct investment in China fell 13.7 percent year-on-year to US$163.3 billion.

But in a sign of improving business activity, industrial output by foreign, Hong Kong and Taiwanese-invested manufacturers rose 6.2 percent in the first two months of the year, outpacing the 5.8 percent growth of state-backed enterprises.