hina has issued new rules on managing outbound investment, which are expected to improve global integration and protect investors.
The State Council issued the Provisions on Outbound Investment, the country's first dedicated administrative regulation governing outbound investment activities, on June 1.
Set to take effect on July 1, the new regulatory framework comes as Chinese enterprises are deepening integration into the global industrial network, while sweeping global economic shifts and rising geopolitical frictions have fueled unilateralism and protectionism, bringing mounting external pressures on Chinese overseas investment. Against such a backdrop, the new top-level policy replaces previously fragmented departmental rules with a unified institutional system to better guide and regulate cross-border investment activities.
He Yongqian, spokesperson for China's Ministry of Commerce, said the new rules are "a milestone in the development of China's outbound investment governance," noting that it prioritizes service improvement, governance optimization and investor protection.
The regulation reiterates China's commitment to high-standard opening-up and upholds market-oriented principles, which guarantees investors' independent decision-making, risk assumption and autonomous operation in outbound investment.
Based on these principles, the regulation upgrades government public services and protection mechanisms for overseas investment, pledging to integrate diplomatic, legal, financial and logistical resources to support enterprises in their global expansion. It also encourages professional institutions to deliver international legal, auditing and consulting services. Notably, it establishes explicit response protocols against discriminatory foreign investment barriers. Authorities will investigate unfair restrictive measures and adopt targeted legal countermeasures to safeguard the legitimate rights and interests of Chinese overseas investors.
In addition, the regulation introduces a categorized and precise supervision system to strike a sound balance between risk prevention and investment facilitation. It proposes to streamline approval and filing procedures for ordinary commercial outbound investment to improve market efficiency, while tightening security reviews for investment in sensitive sectors that may involve national security risks. The regulation also requires authorities to provide clear guidance on investment orientation and behavioral norms, ensuring Chinese outbound investment will not disrupt global market order.
Data from the Ministry of Commerce shows that China's foreign direct investment hit US$174.38 billion in 2025, representing a year-on-year increase of 7.1 percent. Industry experts point out that Chinese enterprises' overseas expansion has entered a new stage where more firms are both exporting products and building overseas production bases and R&D institutions to deepen integration into global industrial and supply chains. Such long-term, large-scale and multi-stakeholder investment poses higher requirements for a stable and standardized institutional environment.
Experts believe the regulation will play a big role in curbing irrational outbound investment, guide enterprises to pursue standardized, green and high-value cross-border investment, and bolster high-quality Belt and Road cooperation. Furthermore, it will help stabilize global industrial and supply chains and enhance the international competitiveness of Chinese enterprises.
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