[Video] China tightens rules on money, data and talent going overseas

China’s June decree on outbound investment rules puts into writing several areas that Chinese authorities had already been tightening this year. From capital flows and technology transfers to personnel movement, many of the issues covered in the regulation had surfaced in earlier enforcement and regulatory actions.

In April, the Cyberspace Administration of China held a national conference on cyber law in Beijing, after which there were reports of tighter controls over overseas internet access and disruptions to VPN services. Around the same period, Beijing reportedly halted Meta’s proposed acquisition of Chinese AI startup Manus, while the company’s founders were said to have been placed under exit restrictions. By late May, regulators had announced a crackdown on illegal cross-border securities activities, fining offshore brokerages including Futu, Tiger Brokers and Longbridge for operating without proper mainland licences.

The 34-article State Council decree signed on 1 June then placed these areas within a formal regulatory framework for outbound investment. While the regulation says China supports overseas investment and business activity, it also sets out closer supervision in areas linked to national security, restricted goods and technologies, data flows, foreign exchange, taxation and personnel movement. Watch the video for a breakdown of what the decree covers, and how it fits into China’s recent cross-border controls.

Related: Manus quagmire: The long arm of China’s cross-border strategic reach | Beijing’s new red line: Offshore firms can’t ‘de-China