China has introduced new regulations imposing strict controls on overseas investment and technology transfer. Prime Minister Li Qiang signed the decree on May 5, and it will take effect on July 1, according to the state news agency Xinhua. The rules were finalized after approval at a State Council executive meeting on April 17. They apply to Chinese companies, institutions, and individual residents engaging in outbound investment.

Beijing stated that the move aims to strengthen oversight of capital flows amid rising geopolitical tensions. The regulations prohibit investors from transferring restricted or controlled products, technologies, services, or data abroad without government approval. They also ban unauthorized technology or information transfers through overseas employment, technical assistance, or training programs, closing potential loopholes for export control evasion.

The new framework includes national security reviews for foreign investments or asset transfers that could affect national security. China also warned that foreign individuals or entities attempting to harm its sovereignty, security, or development interests may face countermeasures.