Published on: 2026-07-06
Source: People’s Republic of China in Russian –
An important disclaimer is at the bottom of this article.
On July 1, 2026, the “Regulations of the State Council of the PRC on Overseas Investments” (hereinafter referred to as the “Regulations”) came into effect. This is the first administrative regulatory act in the field of China’s overseas investments.
In recent years, the volume of Chinese overseas investments has been steadily increasing. According to the Ministry of Commerce, by the end of 2025, Chinese enterprises abroad numbered more than 50,000 and were present in 190 countries and regions worldwide. In terms of overseas investment volume, China has been among the top three global leaders for nine consecutive years. The larger the scale of investments, the more acute the need for regulation and risk management.
Experts note that the new Regulation marks a transition to a new, systematic, and legal stage in the regulation of foreign investments in China. It consolidates previously scattered regulatory rules, has higher legal force, contributes to stabilizing business expectations, and serves as a guarantee for long-term investment planning.
The new Regulation expands the scope of regulation of foreign investments, covering all entities, all types of activities, and the entire investment cycle. In the future, when making foreign investments, enterprises will need to conduct an assessment of compliance with regulatory requirements at an early stage of the transaction regarding aspects such as investment approval, capital outflow abroad, technology export, cross-border data transfer, security checks, and post-investment management.
The regulation clearly establishes legal liability measures and sanctions for various types of violations, significantly increasing the cost of non-compliance with the requirements.
Lawyers emphasize that security checks are no less important as preliminary procedures than registration for obtaining permission. When planning foreign investments, enterprises should shift from the concept of “correcting mistakes post facto” to the concept of “proactive risk management” and actively monitor risks.
The provision also stipulates the need to improve the comprehensive overseas service system, promote the integration of trade and investment, and strengthen institutional measures in various areas to ensure reliable legal protection for Chinese enterprises entering overseas markets during international cooperation and competition.
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