China has unveiled a new set of outbound investment regulations that will tighten supervision of overseas investments and cross-border transfers of sensitive goods, technology, services and data from 1 July 2026.
The regulations, approved by the State Council in April, create a unified framework governing outbound investments, security assessments and compliance requirements for Chinese companies, organisations and individual residents investing abroad.
Under the measures, investors are barred from exporting or transferring certain goods, technology, services and related data. Any transfer of restricted items outside China will require prior approval from the relevant authorities.
The rules also seek to prevent circumvention of export controls by prohibiting the transfer of controlled technologies through the deployment of technical personnel, cross-border technical support or overseas training activities.
China has also reinforced its outbound investment security review regime.
Investments that affect, or have the potential to affect, national security, as well as associated asset transfers and disposals, will be subject to review requirements.
Organisations and individuals involved in such investments must cooperate with review processes and comply with any decisions arising from them.
The framework requires investors to complete applicable filing, reporting and cross-border fund registration procedures.
It also increases scrutiny of cross-border data transfers, technology exports, cybersecurity oversight and other activities linked to overseas investments.
The regulations set out penalties for prohibited investments, failure to fulfil filing obligations, obtaining approvals through improper means and breaches of security review requirements.
Authorities may order investors to suspend investment activities, dispose of assets, surrender unlawful gains and pay financial penalties.
China said it will keep backing outbound investment, deeper international cooperation, and the expansion of both multilateral and bilateral investment frameworks.
At the same time, the regulations emphasise tighter risk controls and stronger protections for national security, national interests, and the public interest.
