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China’s 15th Five-Year Plan: What Foreign Founders Need to Know About Business Reforms

Key takeaways from China’s 15th Five-Year Plan for foreign founders: consumption trends, free trade agreements, foreign investment, and risk management.

China’s 15th Five-Year Plan: Business Reforms and Opportunities for Foreign Founders

China’s State Council Information Office recently held a press conference outlining business development priorities for the 15th Five-Year Plan period (2026–2030). Officials from the Ministry of Commerce (MOFCOM) discussed consumption, trade, foreign investment, and risk management. For foreign founders registering or operating a company in China, these policy directions signal both opportunities and regulatory expectations. Below is a summary of the key points from the briefing, framed as practical guidance.

Consumption Trends and Market Opportunities

Vice Minister of Commerce Jiang Chenghua noted that during the 14th Five-Year Plan, China’s social consumer goods retail sales surpassed 40 trillion yuan and then 50 trillion yuan. In the first three quarters of 2026, total retail sales of goods and services grew by 2.6% year-on-year. Consumption is shifting: service consumption is accelerating, goods consumption is upgrading, and new forms of consumption are emerging. However, the domestic market still faces supply exceeding demand, and factors constraining consumption remain.

For foreign founders, this suggests opportunities in sectors aligned with these trends. The government plans to stimulate consumption by optimizing supply, innovating consumption scenarios, and improving facilities. Businesses that offer high-quality, innovative products or services—especially in technology, health, and lifestyle—may find a receptive market. Yang Mu, Director of the Department of Market Operation and Consumption Promotion, highlighted the “China Haul” trend where foreign shoppers share their purchases on social media. This reflects growing recognition of “Shopping in China.” Inbound consumption is expanding beyond traditional specialties like tea and silk to include tech products, Chinese-style fashion, wellness items, and beauty and trendy toys. Foreign founders could consider how their offerings fit these evolving preferences.

High-Standard Free Trade Agreements: Expanding Market Access

Jiang Chenghua detailed progress on free trade agreements (FTAs). China has signed 26 FTAs with 33 countries and regions, covering 45% of China’s total trade and 70% of foreign investment. In 2026, China completed an upgraded FTA with Switzerland (eliminating tariffs on over 99% of goods eventually) and signed an upgrade protocol with Georgia, incorporating new rules on digital trade, AI, and sustainable development. China also advanced negotiations with African and Pacific countries using a “framework agreement plus module negotiations” approach. For the first three quarters of 2026, China’s trade with FTA partners reached 19.55 trillion yuan, up 30% year-on-year, contributing over 70% of total trade growth.

For foreign founders, these agreements can reduce costs and improve market access. Companies sourcing from or exporting to FTA partners may benefit from lower tariffs and streamlined rules. The government encourages businesses to utilize these agreements; training and support are available. Additionally, China is pushing forward the China-ASEAN FTA 3.0, the China-Peru FTA upgrade, and negotiations with South Korea, New Zealand, and Central Asian countries. These developments could open new avenues for trade and investment.

Foreign Investment Environment and “Invest in China” Initiative

In the first three quarters of 2026, actual use of foreign capital was 548.8 billion yuan, with existing foreign investment remaining stable. MOFCOM plans to continue improving the foreign investment service system and promote the “Invest in China” brand. The goal is to make China a fertile ground for foreign businesses. Measures include expanding opening-up in a orderly manner, implementing a pilot free trade zone upgrading strategy, and improving services for foreign-invested enterprises.

Foreign founders considering company registration in China should note the government’s focus on maintaining a stable and predictable environment for foreign investment. The emphasis on service guarantees suggests that procedures for establishment and operation may become more streamlined. However, founders should stay informed about sector-specific regulations and ensure compliance with local laws.

Risk Management and Compliance

Jiang Chenghua emphasized that while China remains committed to opening up, it will also strengthen risk prevention and control. The government plans to improve mechanisms for handling trade frictions, refine export control and security review systems, and enhance anti-sanctions and anti-long-arm jurisdiction legal frameworks. For foreign founders, this means that compliance with Chinese laws and regulations is essential. Understanding export controls, data security, and other regulatory requirements is crucial for smooth operations.

Practical Takeaways for Foreign Founders

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 company registration and ongoing operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.

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General information only, not legal or tax advice.