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The new regulation on overseas investment fills an institutional gap

The new regulation on overseas investment fills an institutional gap

Published on: 2026-06-09

Source: People’s Republic of China in Russian –

An important disclaimer is at the bottom of this article.

At the end of the day, the “Regulation of the State Council on Overseas Investment” was officially published, which will come into effect on July 1, 2026. This is the first administrative regulation of China in the field of overseas investment.

In the context of China’s deepening participation in the international division of labor and sectoral cooperation, the new “Regulation” will contribute to openness at a high level, high-quality development of foreign investment, effective management of foreign investments, protection of the legal rights and interests of investors in the field of foreign investment, as well as ensuring state sovereignty, security, and development interests.

Currently, Chinese enterprises have created more than 50 thousand companies in over 190 countries and regions of the world. The total volume of China’s overseas investments exceeds 3 trillion US dollars, and China has ranked third in the world for nine consecutive years.

As explained by a research associate at the Institute of Foreign Economic Research of the Academy of Macroeconomic Research under the State Committee for Development and Reform, Kun Ishu, from the point of view of application, the “position” covers foreign investment activities of various types of entities, including enterprises, organizations, and private individuals of China, thereby filling institutional gaps.

As for the control procedure, the “Regulation” forms a complete cycle: from preliminary verification for compliance with regulatory requirements, dynamic monitoring during the implementation process until subsequent encouragement or accountability — a comprehensive control system is formed. Under management, it has become more scientific: the “Regulation” protects both investors and national security and development interests, ensuring security through regulation and promoting development through service support.

Foreign investments are an important component of the policy of openness to the outside world. The development of the “Regulation” is a key measure in the implementation of the 15th five-year plan and the expansion of openness at a high level. This event has historical significance in the process of developing Chinese foreign investments.

The “Position” takes into account the key tasks of the 15th five-year plan in the field of effective management of investment activities abroad, improving the system of providing comprehensive services overseas, promoting integrated development of trade and investment, directing cross-border placement of production chains and supply chains in the context of rational and orderly development. By optimizing the management model, the “Position” lays a solid institutional foundation for the stable and steady expansion of Chinese companies into foreign markets.

Kun Ishu believes that, on the one hand, the “Provision” creates a transparent and standardized institutional environment, better protecting the legal rights and interests of foreign investment entities, helping enterprises and individuals avoid potential risks and manage them.

On the other hand, the “Provision” emphasizes the importance of improving the integrated service system abroad, enhancing the functions of public service platforms in all areas, paying special attention to the integration of various types of services, supporting professional service providers in increasing their capabilities and service levels abroad, which gives enterprises greater confidence when entering foreign markets.

Please note; This information is raw content directly obtained from the information source. It represents an exact report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.