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China will introduce new rules on overseas exports and investment from 1 July 2026.
China's State Council has issued rules requiring authorisation for exports of restricted goods, technologies, services and data, and tightening scrutiny of overseas investment from 1 July 2026.
Publication and entry-into-force timetable
The initial source states that China's State Council approved rules in April providing for the prohibition of the export or unauthorised use of goods, technologies, services and data falling within the category of items "restricted by the state" . It adds that the measure was announced on 1 June 2026 .
Reuters, as cited by The Jerusalem Post, reports that the rules were published on Monday by the State Council, described as China's cabinet, and will enter into force on 1 July 2026 . The article adds that one provision requires authorisation for exports of restricted Chinese goods, technologies, services or related data .
Bloomberg states that the directive was published on Monday by the Chinese cabinet and refers, in its article, to a gov.cn page dedicated to the text . The Bloomberg extract provided does not mention the directive's official number .
Goods, technologies, services and data covered
The initial source refers to rules approved in April by China's State Council and announced on 1 June 2026, covering goods, technologies, services and data falling within the category of items "restricted by the state" . It states that those rules provide for the prohibition of the export or unauthorised use of those goods, technologies, services and data .
Reuters, as cited by The Jerusalem Post, states that the rules were published by the State Council and will enter into force on 1 July 2026 . The agency reports that one provision requires authorisation for the export of Chinese goods, technologies, services or related data classified as restricted .
The same Reuters report also covers certain cross-border transfer channels . According to Reuters, the text prohibits the transfer of goods, technologies, services and related data whose export is prohibited through the dispatch of technical personnel, the organisation of work abroad, cross-border technical assistance or cross-border training . The available source does not specify which types of transactions or asset transfers could be prohibited on national security grounds .
Security review of overseas investment
The text published by China's State Council will enter into force on 1 July 2026, according to Reuters . Bloomberg states that the directive is intended to "improve" reviews applicable to overseas investments liable to affect national security . The agency also reports a strengthening of the obligations on Chinese organisations and individuals to assist those reviews and comply with decisions taken in that framework .
Reuters states that the rules give the State Council authority to conduct security reviews of overseas investments or asset transfers that may affect national security . The same report mentions the power to order the disposal of shareholdings or the cessation of investments, as well as the imposition of fines in cases of non-compliance . Reuters states that the text provides, for the first time, a formal legal basis for requiring the unwinding of overseas transactions that have already been completed .
Bloomberg describes the directive as an effort to unify and tighten previously fragmented rules . Reuters specifies that the rules do not detail the types of transactions or asset transfers that may be prohibited on national security grounds .
Retaliatory measures and documentary limits
Reuters states that the rules published by China's State Council will enter into force on 1 July 2026 and give Beijing the power to prohibit trade by foreign entities with China where their country restricts Chinese investment .
The agency gives one example: if the US government places a Chinese technology company on a sanctions list, Beijing may respond by blocking an acquisition unrelated to that sanction involving a China-linked entity by a US company .
Reuters specifies that the rules do not detail the categories of transactions or the asset transfers that may be prohibited on national security grounds . Bloomberg describes the text as a directive published by the Chinese cabinet, intended to "improve" reviews of overseas investments that may affect national security . The available file does not contain the full State Council text as a standalone source; the gov.cn reference appears in the Bloomberg article .
Sources cited
- www.wsj.com - www.wsj.com