China Tightens Outbound Investment Rules; Bans Data Transfer via Personnel Dispatch

CNA, Taipei, June 1. China will implement new regulations on outbound investment starting July 1, including a ban on investors transferring prohibited or restricted data and technology abroad through methods such as dispatching technical personnel. Investors must fulfill legal procedures, including approval, filing, and cross-border capital registration. According to reports from Xinhua and The Beijing News, the regulations, signed by Premier Li Qiang, consist of 34 articles. Investors are prohibited from exporting or using goods, technology, services, and related data that are banned or restricted by the state. Furthermore, transferring such technology without permission through means like dispatching technicians or organizing training abroad is strictly forbidden. Investors who fail to comply, submit false materials, or obtain approval through improper means will face confiscation of illegal gains and fines ranging from 1‰ to 5‰ of the investment amount. These regulations also apply to the management of investments in Hong Kong, Macau, and Taiwan.