China Strengthens Oversight of Overseas Investment, Restricts Outflow of AI and High-Tech Talent

(CNA Taipei, July 7) Foreign media reports indicate that Beijing, under the guise of protecting economic development and national security, has recently introduced multiple new regulations to strengthen control over companies' overseas investments and restrict the outflow of China's high-tech talent. This exacerbates the impact on the technology industry amid the US-China strategic competition, raising concerns within the business community.

Radio France Internationale (RFI) reported that the Chinese government announced new legal provisions on July 1st to strengthen control over Chinese companies attempting to 'go global' in the name of national security. Coupled with a series of rules announced since April concerning artificial intelligence (AI), semiconductors, or green technology, observers view this as a set of tools for Chinese regulators to control the flow of personnel and capital in strategic industries overseas.

The National Development and Reform Commission (NDRC) of China decided on April 27th to block US-based Meta Platforms from acquiring the artificial intelligence startup Manus, which originated from a Chinese team. The two co-founders of Manus initially started in China. To expand into the global market, they relocated their headquarters and core team to Singapore in 2025 and reached an acquisition agreement with Meta, the owner of Facebook and Instagram, in December 2025.

However, Manus, which started in China, has been under the control of Chinese regulatory authorities. The Financial Times previously reported that relevant departments once restricted the two co-founders from leaving the country and summoned them to Beijing.

Analysis suggests that this serves as a wake-up call for Chinese entrepreneurs aiming to list on the US Nasdaq. To conceal their Chinese background, some Chinese companies have previously used Singapore as a springboard. 'Singapore whitewashing' has become a relocation strategy for companies to 'cleanse' their Chinese origins. For example, Chinese fast-fashion giant SHEIN has used this method for overseas investment.

RFI reports that this approach now appears to be facing a crisis, as Beijing is reasserting control over investments to curb the outflow of Chinese talent, capital, and technical expertise. (Editor: Feng Zhao / Tian Ruihua) 1150707

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