China Implements New Trade Rules, Tightens Control on Foreign Investments
China has introduced new regulations to tighten control over overseas deals involving Chinese investors, technology, data, and national security. These rules, set to take effect on July 1, require authorization for exports of restricted goods and technologies. The regulations provide a legal basis for China to unwind completed overseas transactions, increasing compliance risks for global investors in sensitive sectors like tech and AI. The rules also ban cross-border talent transfers in sensitive sectors without approval and give the State Council authority to conduct security reviews of overseas investments that may affect national security.