On June 1, 2026 China's State Council issued the Regulation on Outbound Investment, signed by Premier Li Qiang, its first dedicated administrative regulation for overseas investment; it took effect July 1, 2026. The 34-article rule guarantees investors' independent decision-making while mandating cross-agency government support (foreign affairs, legal, finance, trade, logistics, customs) and countermeasures against discriminatory foreign restrictions. China's outbound direct investment reached RMB 429.42 billion (about USD 63 billion) in the first four months of 2026, up 3.9% year-on-year.
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China's first Regulation on Outbound Investment takes effect July 1, 2026
Why this matters for founders
Founders planning to expand a startup overseas (cross-border e-commerce, SaaS into Southeast Asia, hardware supply chains) now have a unified compliance framework plus designated government service and financing channels to tap, but must formally bear their own risk and follow local laws. Map your outbound structure to the new 34-article rule before setting up any foreign entity or affiliate loan.
Source: The State Council of the People's Republic of China (gov.cn)
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