China issued new regulations on outbound investment to expand international cooperation and better safeguard the legitimate rights and interests of Chinese companies operating overseas. The new regulations, consisting of 34 articles, will take effect on July 1. China’s outbound investment is continuing to grow, with Chinese companies expanding their presence in sectors ranging from manufacturing to green energy and digital technologies. China’s non-financial outbound direct investment (ODI) increased 1.3% year-on-year to USD145.66 billion in 2025, while in the first four months of this year, it totaled USD63.5 billion, up 3.9% year-on-year. The regulation is expected to provide a clearer institutional framework for overseas investment against a backdrop of rising protectionism and geopolitical uncertainties.
“By promoting high-quality outbound investment and strengthening regulatory safeguards, China aims to offer greater certainty for long-term business planning, deepen economic ties with overseas markets and help anchor global growth amid a volatile external environment,” said Liu Ying, Researcher at Renmin University of China’s Chongyang Institute for Financial Studies in Beijing. The regulation stipulates that investors cannot export or use goods, technologies, services and related data that are prohibited from being exported under Chinese law. In addition, export or use of restricted goods, technologies, services and related data requires prior authorization from relevant authorities. The regulation is aimed at helping companies pursue overseas opportunities while managing potential risks more effectively. Xi Guohua, Chairman of Chinese financial conglomerate CITIC Group Corp, said that clearer compliance requirements will help Chinese companies better identify sensitive sectors, avoid regulatory missteps and protect their long-term interests in
overseas markets.
In a report released in late March, the Chinese Academy of International Trade and Economic Cooperation said that the need for stronger safeguards for outbound investment has increased because some countries have recently intensified their investment reviews and regulatory scrutiny of foreign companies on national security grounds. In response to these challenges, the regulation also authorizes countermeasures against discriminatory restrictions, arbitrary business disruptions and other practices that undermine the interests of Chinese investors abroad, the China Daily reports.
