Overview
- China’s State Council published a new regulation that will take effect on July 1 and centralize oversight of outbound investment involving technology, data and talent.
- The rules require prior authorisation for exports of restricted Chinese goods, technologies, services or related data and bar unapproved cross‑border transfers that could move sensitive know‑how overseas.
- The regulations explicitly ban moving technical personnel or arranging cross‑border training in sensitive sectors without approval, a move aimed at stopping so‑called “Singapore‑washing.”
- The new law gives Beijing clear authority to conduct security reviews, order disposal of shares or cessation of investments, force the unwinding of completed overseas deals and impose fines for noncompliance.
- The measures widen powers introduced in April’s supply‑chain decrees and could prompt Chinese firms and foreign investors to rethink M&A, hiring and data‑sharing plans because of higher legal and commercial uncertainty.