China Tightens Grip on Overseas Investments with New Regulations

China has introduced comprehensive new regulations to enhance scrutiny over overseas deals involving Chinese entities. Effective from July 1, these rules require authorization for exporting restricted items and forbid indirect transfers through cross-border engagement, following the unwinding of Meta's acquisition of Manus.

China has unveiled a new set of rigorous regulations, expanding the oversight capabilities of its regulators concerning overseas transactions. Announced by the State Council, these new rules will be activated on July 1, aiming to reinforce control over deals involving Chinese investors, technology, and data.

A critical aspect of the regulations mandates that exports of select Chinese goods, technologies, and services will now require official authorization. This move emphasizes the country's intent to protect its national security interests amidst growing international economic engagements.

Additionally, the rules introduce a prohibition on indirect transfers, which includes restrictions on cross-border technical staff deployments, guiding, training, or similar arrangements. This measure aligns with recent state actions, such as dismantling Meta's purchase of the AI startup Manus.