BEIJING — China on Monday introduced new rules expanding government oversight of overseas investments involving Chinese technology, data and national security interests, weeks after regulators ordered the unwinding of Meta’s acquisition of artificial intelligence startup Manus.
The regulations, issued by China’s State Council, will take effect on July 1 and establish a broader legal framework for reviewing and restricting cross-border transactions involving sensitive technologies and strategic sectors, according to government documents released on Monday.
Under the new rules, companies must obtain authorization before exporting restricted Chinese technologies, services, goods or related data overseas. The measures also prohibit indirect transfers through overseas deployment of technical personnel, training programs or other arrangements without approval.
Chinese authorities said the regulations are intended to safeguard national security and strengthen oversight of outbound investments involving sensitive assets. The rules also provide a formal mechanism allowing regulators to require completed foreign investment transactions to be reversed if they are found to violate national security requirements.
The announcement follows Beijing’s decision in April to block Meta’s acquisition of Manus, an AI startup founded by Chinese engineers and later incorporated in Singapore. China’s National Development and Reform Commission (NDRC) ordered the parties to unwind the transaction, citing foreign investment review regulations and national security concerns.
“The Office of the Working Mechanism for Security Review of Foreign Investment has issued a decision prohibiting the foreign-investor acquisition of the Manus project,” the NDRC said in a statement at the time. The agency added that the parties involved were required to withdraw the acquisition transaction.
Meta previously said the deal complied with applicable laws and regulations. “The transaction complied fully with applicable law. We anticipate an appropriate resolution to the inquiry,” a company spokesperson said in an earlier statement reported by Reuters.
The new regulations also target what Chinese officials describe as indirect transfers of strategic technologies and expertise through overseas corporate structures. Legal experts cited by state media said the framework could affect future deals involving Chinese-founded technology firms that relocate operations abroad while retaining significant links to China.
The measures come amid heightened competition between China and the United States in advanced technologies, particularly artificial intelligence. Chinese regulators have increasingly emphasized control over the movement of technology, data and technical talent across borders.
As of Monday, details on how the new rules will be applied to existing overseas investments remained unclear. Chinese authorities said the regulations would be implemented beginning next month, while companies operating in affected sectors review compliance requirements.
