Published by ChinaMNC · Zhouqu

China’s ‘15th Five-Year Plan’ Opens New Doors for Foreign Founders

A practical guide for foreign entrepreneurs on what China’s latest five-year plan means for market entry, investment, and operations, based on a recent briefing by China’s Ministry of Commerce.

Foreign founders looking to establish or expand a company in China should pay close attention to the priorities outlined in China’s 15th Five-Year Plan (2026–2030). At a recent State Council Information Office press conference, Vice Minister of Commerce Jiang Chenghua and other senior officials detailed how the ministry will pursue high-quality commerce development during this period. The briefing highlighted both achievements from the previous plan and concrete measures that will shape the business environment for foreign-invested enterprises.

What the 14th Five-Year Plan Delivered

During the 14th Five-Year Plan period, China’s consumer market expanded significantly, with retail sales of consumer goods surpassing 40 trillion yuan and then 50 trillion yuan. Goods imports and exports exceeded $6 trillion, while services trade topped $1 trillion. In terms of two-way investment, China attracted over $750 billion in foreign direct investment over five years, and non-financial outbound direct investment reached more than $800 billion, covering nearly 190 countries and regions. These figures underscore the scale and resilience of China’s market—key considerations for any foreign founder assessing entry.

In the first three quarters of 2026, the opening year of the 15th plan, commerce operations were generally stable with positive momentum. Retail sales of goods and services grew 2.6% year-on-year, goods imports and exports rose 18.8%, and actual use of foreign capital reached 548.8 billion yuan, with existing foreign investment remaining stable. Non-financial outbound direct investment totaled $101 billion. Notably, through difficult negotiations, China maintained generally stable economic and trade relations with the US and the EU, creating a relatively stable international environment for companies worldwide, including those operating in China.

Four Focus Areas for the 15th Five-Year Plan

The Ministry of Commerce will concentrate on four areas that directly affect foreign founders:

1. Boosting Consumption

Consumption is seen as a key driver of economic development. The plan aims to stimulate consumer potential by improving supply, innovating consumption scenarios, and upgrading facilities. For foreign companies in consumer goods, retail, or services, this signals opportunities to tap into China’s evolving consumer preferences, including services consumption and new types of consumption.

2. Expanding High-Level Opening-Up

Despite rising unilateralism and protectionism globally, China reaffirmed its commitment to opening up and maintaining the resilience of global supply chains. The plan includes:

• Proactively expanding opening-up in more sectors and regions.
• Implementing a strategy to upgrade pilot free trade zones, enhancing their role as test beds for reform and opening.
• Promoting the ‘Export to China’ brand to bring more global products to Chinese consumers.
• Enhancing the ‘Invest in China’ brand and improving the foreign investment service and protection system, making China a fertile ground for foreign businesses.
• Improving the management system for outbound investment and optimizing overseas comprehensive services.
• Enhancing the quality and effectiveness of Belt and Road economic and trade cooperation.

These measures suggest continued efforts to streamline market access and improve services for foreign investors.

3. Contributing to Global Economic Governance

China will uphold the multilateral trading system centered on the WTO, deepen bilateral and multilateral trade cooperation, expand its network of high-standard free trade areas, and actively lead the formulation of international rules in emerging areas such as digital trade and green development. It also aims to foster an open AI ecosystem and work with other countries to build international trade rules for artificial intelligence. For foreign founders, this means potential alignment with international standards and greater predictability in cross-border trade.

4. Strengthening Risk Prevention and Openness Supervision

The plan emphasizes national security and risk prevention. It includes optimizing trade friction response mechanisms, improving export control and security review systems, and refining laws and regulations on countering sanctions, interference, and long-arm jurisdiction. While this may imply stricter compliance requirements, it also aims to create a more stable and secure environment for legitimate business operations.

Free Trade Agreement Network: Opportunities for Market Access

China has already signed 26 free trade agreements with 33 countries and regions, covering 45% of its total foreign trade and 70% of foreign investment. In 2026, China completed upgrade negotiations with Switzerland and signed an upgrade protocol with Georgia. The China-Switzerland upgrade includes zero tariffs on over 99% of goods trade and incorporates new rules on digital trade, AI, and trade and sustainable development. The China-Georgia upgrade expands provisions on investment, e-commerce, and technical barriers to trade.

Furthermore, China has signed framework agreements on common development economic partnership with 40 African countries and 8 Pacific island countries, and early harvest arrangements with Congo, Kenya, and Seychelles. In the first three quarters of 2026, China’s imports and exports with FTA partners reached 19.55 trillion yuan, up 30%, contributing over 70% of foreign trade growth. Foreign founders can leverage these agreements to reduce costs and access new markets.

Inbound Consumption Trends: ‘China Haul’ and ‘Buy in China’

The briefing also noted the rising popularity of ‘China Haul’ on overseas social media, where foreign friends share their shopping experiences in China. This reflects the growing recognition of ‘Buy in China.’ Inbound consumption is shifting from traditional specialties like tea and silk to tech products, Chinese-style fashion, wellness products, and trendy beauty and toys. For foreign founders in consumer sectors, this indicates evolving opportunities in China’s inbound tourism and retail landscape.

Practical Takeaways for Foreign Founders

Based on the briefing, foreign founders should consider:

• Leverage FTAs: Utilize China’s expanding network of free trade agreements to reduce tariffs and access new markets. Stay informed about upcoming agreements and upgrades.
• Tap into consumption growth: Align products and services with China’s evolving consumer trends, including services and new consumption types.
• Benefit from opening-up measures: Monitor developments in pilot free trade zones and the ‘Invest in China’ brand for potential incentives and support.
• Ensure compliance: Understand China’s risk prevention and security review mechanisms to operate smoothly.

These insights can help foreign founders navigate the Chinese market and register or operate a company more effectively.

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

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