China tightens outbound tech investment rules following Nexperia and Manus disputes

On Jun 1, 2026

China will increase scrutiny of outbound technology investments and authorise countermeasures against foreign entities deemed harmful to its national interests, in a move that follows the high-profile Nexperia dispute and Meta Platforms’ aborted acquisition of Manus.

The State Council, China’s cabinet, released a new set of regulations governing outbound investment from the Chinese mainland – including to Hong Kong, Macau and Taiwan – requiring approval for the overseas transfer or use of goods, technologies, services and related data subject to export controls.

Dated May 5 but released on Monday, the 34-article regulation also barred indirect transfers through the cross-border deployment of technical personnel, consulting services, training programmes and other arrangements.

The rules take effect on July 1 and authorise Beijing to impose retaliatory measures on foreign entities viewed as undermining China’s national interests, including those that suspend certain transactions with Chinese enterprises or adopt discriminatory measures against the country’s investors.

The move followed authorities blocking Meta’s planned US$2 billion acquisition of Manus, a Chinese-founded artificial intelligence start-up that had relocated to Singapore.

Since Beijing began tightening outbound investment rules, some Chinese technology companies have also reportedly introduced tighter travel curbs for AI-related personnel.

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