Key facts
- China has issued new regulations tightening control over outbound investments, effective July 1.
- The new outbound investment rules require authorization for exports of restricted goods, technologies, services, or data.
- The regulations provide a legal basis to unwind completed overseas transactions.
- Cross-border talent transfers in sensitive sectors require approval under the new rules.
- China has expanded its outbound investment rules to include individuals.
- China is broadening its trade secret regulations to include data and algorithms.
- China's CSRC is tightening oversight of the private fund industry.
- Measures include raising registration bars for private funds.
- Authorities are implementing enhanced screening for students' eyeglasses during a major exam.
- Concerns exist about smart glasses being used for cheating in exams.
China has introduced new regulations that tighten control over outbound investments, effective July 1, aiming to strengthen oversight and management of overseas capital flows. These rules require authorization for the export of restricted goods, technologies, services, or data, and establish a legal basis to unwind completed overseas transactions. The updated regulations also extend to individuals, allowing them to invest in overseas markets, with the stated goal of further opening China's capital markets and attracting foreign investment. The new rules are expected to impact Chinese companies' foreign direct investment strategies and cross-border M&A activities.