China imposes ‘national security’ rules on overseas investments

BEIJING – China is intensifying its scrutiny of investments overseas with broad “national security” regulations taking effect from yesterday, at a time of rising tech competition with Washington.

The new rules, originally announced on 1 June, provide authorities with a sweeping legal framework to influence flows of capital and personnel across China’s borders. Beijing sees fields such as artificial intelligence, computer chips and green technology as economically and strategically vital and has vowed to promote their domestic development.

The new measures are intended to “enhance the quality and level of outward investment,” according to the provisions laid out by the State Council, China’s cabinet.