China imposes new national‑security controls on overseas investments

Effective 1 June, China introduced regulations that tighten state oversight of outbound capital and talent flows. The rules require all foreign‑direct investments and the export of qualified personnel to meet a broad “national‑security” concept, giving authorities the power to review and block transactions that could affect strategic sectors such as artificial intelligence, semiconductors and green technologies.

The measures expand control beyond assets and data to services and overseas training, and they follow a recent high‑profile rejection of Meta’s attempt to acquire the AI start‑up Manus. Investors have warned that the framework could hamper Chinese tech firms’ access to global markets and increase compliance costs for foreign companies operating in China.