China has planned to ease laws on foreign investment in the country's new free trade zones. The move would be done in a bid to lure foreign trade and maintain its economic growth. The announcement was made by the State Council after meeting with Premier Li Keqiang. Implementing the changes would open up the Chinese economy and eliminate unnecessary administration. In addition to allowing free trade zones to remove bureaucracy, China would possibly offer incentives to enable the zones to sustain its target economic growth of 7% a year at the very least.

Last year, China experienced a 3.7% drop in foreign direct investment. A business group from the US called upon the Chinese government to improve the investment climate for foreigners. Another business group from Europe also cautioned China of the declining investor optimism and worsening regulatory environment in the mainland.

In a phone interview, Control Risk Managing Director for Greater China and North Asia Kent Kedl told Bloomberg, "The Chinese government knows that having foreign investment is a very good thing and they want this to be an attractive market for strategic and financial investors."