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Regulations China Jun 1, 2026

China's first State Council Outbound Investment Regulation takes effect 1 July 2026

China's first State Council Outbound Investment Regulation takes effect 1 July 2026

Chinese Premier Li Qiang signed a State Council decree (Order No. 837) issuing the Regulations on Outbound Investment, a 34-article rule approved 17 April 2026 and effective 1 July 2026. It is the first administrative regulation to comprehensively govern outbound investment by PRC investors, consolidating NDRC and MOFCOM rules under full-process, classified and graded supervision, with dedicated security reviews for deals that may affect national security.

Why this matters for founders

China tech founders who raise USD via offshore/VIE holding structures or plan overseas expansion must now map any restructuring, IP licensing or key-staff relocation against this unified regime and budget for a possible security review before signing. Treat cross-border technology transfer as a regulated event, not a private commercial choice.

Source: The State Council of the People's Republic of China (english.www.gov.cn)

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