New rules from July 1 give Beijing wider powers to block, unwind, or penalise foreign investments linked to Chinese tech and national security.
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China has introduced sweeping new rules to tighten control over overseas deals involving Chinese investors, technology, data, and national security concerns.
The regulations, issued by the State Council, will take effect on July 1 and give Beijing the authority to unwind foreign transactions, restrict technology transfers, and penalise non-compliance.
They also allow China to retaliate against countries that limit Chinese investment abroad.
The move comes after Beijing reportedly ordered Meta to reverse its acquisition of AI startup Manus, citing violations of foreign investment rules.
The new framework expands oversight of exports of sensitive goods, technologies, services, and related data, including transfers through overseas staffing or training arrangements.
It also restricts cross-border movement of talent in strategic sectors without government approval.
Authorities will have the power to block investments, force divestments, and impose fines if deals are deemed to threaten national security.
The rules also extend to Hong Kong, Macau, and Taiwan, signaling tighter control over cross-border capital flows.
Analysts say the measures formalise Beijing’s growing focus on tech security, capital control, and retaliation against Western sanctions.
The policy is expected to increase compliance risks for global firms operating in sensitive sectors such as AI and advanced technology.
