China: New Outbound Investment Rules Reported to Prevent Export Control Evasion

According to reports, the Chinese government has enacted a new set of rules tightening controls over outbound investments, with the explicit aim of closing legal loopholes used by companies to circumvent export control regimes. The regulation was reportedly published in June 2026 and is now in effect, although the corresponding official instrument has not been identified.

This measure is part of a global trend toward stricter export controls, especially for sensitive technologies such as semiconductors, artificial intelligence, and dual-use equipment. China seeks to align its investment regulations with its export control policies to prevent the transfer of restricted technologies through investments in third countries.