Beijing expands regulatory oversight on outbound technology investment

One month after ordering the dissolution of Meta’s acquisition of startup Manus, Beijing has unveiled sweeping regulations tightening control over overseas deals. Effective July 1, the State Council’s new framework grants authorities broad powers to scrutinize investments involving sensitive data, proprietary technology, and national security interests.

The updated rules mandate formal authorization for the export of restricted goods, technologies, and services. By extending the definition of controlled assets to include related data, regulators have effectively closed loopholes that previously allowed companies to bypass domestic oversight.

Beyond direct asset sales, the directive explicitly prohibits indirect transfers of technology. This includes cross-border deployment of technical personnel, the provision of specialized training programs, and any guidance arrangements deemed sensitive by the government. These measures signal a shift toward total control over how Chinese intellectual property flows into foreign markets, ensuring that any cross-border arrangement remains subject to cabinet-level approval.