China Tightens Overseas Investment Rules, Expanding Controls on Technology and Capital

A China-based expert told The Epoch Times that he believes China’s ’reform and opening up' era has effectively reversed under Chinese leader Xi Jinping.

A Chinese bank employee counts 100-yuan notes and 100-U.S. dollar bills at a bank counter in Nantong, Jiangsu Province, China, on Aug. 6, 2019. STR/AFP via Getty Images

China has introduced new rules governing overseas investment that significantly expand restrictions on the transfer of capital, technology, data, and services abroad, reflecting Beijing’s growing emphasis on protecting the regime over cross-border economic activity, according to an expert.

The regulations, issued by China’s State Council and reported by state media outlet Xinhua News Agency on June 1, prohibit investors from transferring restricted technologies or data through overseas deployment of technical personnel, technical guidance, or training arrangements.