China will further open its services sector in 2026, widening market access and accelerating pilot projects in the telecommunications, healthcare and education sectors, as policymakers seek to translate commitments into concrete outcomes, government officials said on Monday.

Speaking at a news conference in Beijing, Wang Ya, head of the department of foreign investment administration at the Ministry of Commerce, said the policy measures will support foreign-invested service companies in extending their value chains in China, enabling more specialized, integrated and digitalized operations.

The government will ensure that overseas investors can claim tax credits when reinvesting profits earned in China, while providing equal treatment to foreign-funded businesses in consumption promotion, government procurement and bidding activities, said Wang.

Vice-Minister of Commerce Yan Dong said these measures will help steer foreign investment toward service-oriented consumption and improve the quality and diversity of services supply.

Aiming to guide more foreign investment toward advanced manufacturing, modern services, high-tech industries, energy conservation and environmental protection, China will put the 2025 edition of its Catalogue of Encouraged Industries for Foreign Investment into force on Feb 1, 2026, according to information released by the Ministry of Commerce.

The updated catalogue contains 1,679 items, representing a net increase of 205 entries from the 2022 version, along with revisions to 303 items.

Against this policy backdrop, International Workplace Group, the Switzerland-headquartered hybrid workspace platform operating in over 120 countries and regions, will deploy additional resources to expand its presence in China's lower-tier cities, targeting emerging demand beyond major metropolitan areas.

Edward Hu, country general manager of IWG China, said the company sees China's ongoing push to open up the services sector and improve the business environment as a key driver of its expansion, with policy support for services consumption and urban development underpinning sustained demand for flexible office solutions.

Hu said IWG will partner closely with local property owners to revitalize existing commercial assets while leveraging its global network, corporate client base and standardized operating systems to support scalable, sustainable growth in China this year.