China introduced broad national security rules on overseas investments, effective from July 1 2026, amid rising tech competition with the United States. The State Council said the measures were intended to enhance the quality and level of outward investment.

Beijing views artificial intelligence, computer chips and green technology as economically and strategically vital and has vowed to promote domestic development of these sectors, according to Dawn. Dawn also reported that the rules provide authorities with a sweeping legal framework to influence flows of capital and personnel across China’s borders.

The rules, originally announced on June 1 2026 (Dawn), extend existing curbs on cross‑border transfers beyond goods and data to include the export of services, sending technical experts abroad and carrying out training overseas, as reported by The Straits Times.

Some investors expressed concern that the rules could restrict the ability of China’s bustling and sprawling tech ecosystem to access global markets, according to other sources.