Comic Illustration: Helping You Understand China's New Regulations on Foreign Investment
The new regulations from the State Council will take effect on July 1, 2026. Those making outbound investments must have a rules-and-compliance mindset. The regulatory scope has been expanded to cover domestic enterprises, entities, and individuals. Investment involves not only putting in funds, but also directly or indirectly obtaining rights and interests related to overseas assets, as well as financing and guarantees. Companies are required to clearly map out their equity structure, the relevant parties, approval procedures, funding flows, technical data, and security reviews. For individuals, they must first verify their outbound-investment eligibility, the sources of funds, the investment targets, and any potential risks and responsibilities. The cost of illegal conduct is not only fines—it may also include restrictions on continuing outbound investments. Core point: Outbound investment can be done, but it must be compliant; you can’t just focus on business opportunities.