China's first dedicated administrative regulation on outbound investment is unveiled and will take effect on July 1.

On June 1, the Chinese government website released the "State Council's Provisions on Outbound Investment" (hereinafter referred to as the "Provisions"), which is China's first specialized administrative regulation specifically governing outbound investment, and will officially take effect on July 1, 2026.

Officials from the Ministry of Justice, the National Development and Reform Commission, and the Ministry of Commerce answered reporters' questions regarding the core content and implementation significance of the "Provisions," clarifying that it will use high-level legislation to fill institutional gaps, coordinate development and security, and build a solid legal foundation for the high-quality development of outbound investment.

Legislative Background: Adapting to International Changes and Upgrading the Governance System

Outbound investment is a core pillar of high-level opening up. Since the 18th National Congress of the Communist Party of China, China's outbound investment scale has steadily ranked among the top in the world, deeply integrating into global industrial and supply chains. However, as the changes unseen in a century accelerate, geopolitical risks are rising and unilateral protectionism is on the rise. The long-standing management model relying on departmental rules and normative documents has become difficult to cope with the complex international situation and unable to fully protect the rights and interests of investors and national interests.

The introduction of the "Provisions" this time is a key measure to implement the spirit of the Third and Fourth Plenums of the 20th CPC Central Committee. It elevates effective measures from long-term practice into legal systems. It is not only an urgent need to coordinate development and security and promote the high-quality development of outbound investment, but also a major legal practice for China's firm commitment to expanding opening up and promoting economic globalization, possessing milestone significance.

Core Content: Clarifying the Scope of Application and Defining Basic Principles

The "Provisions" clarify that the outbound investment activities of investors within China (including enterprises, other organizations, and resident individuals) are all subject to this law. Outbound investment refers to activities in which investors directly or indirectly obtain ownership, control rights, and related rights and interests of overseas enterprises, assets, etc., by means of injecting assets, equity, or providing financing, guarantees, etc. At the same time, investment in Hong Kong, Macao, and Taiwan regions shall be implemented with reference to these provisions, taking into account special arrangements.

Outbound investment work adheres to the basic national policy of opening up, implements the overall national security concept, and coordinates development and security as well as domestic and international affairs. The core is to improve investment quality and promote mutual benefit and win-win results. The state actively aligns with high-standard international economic and trade rules, advances the high-quality construction of the "Belt and Road," opposes unilateralism and protectionism, and supports investors in making independent decisions, bearing their own risks, and taking responsibility for their own profits and losses according to market principles. At the same time, it requires investors to abide by laws, regulations, and international practices, fulfill social responsibilities, and maintain the national image.

Three Pillars: Service Optimization, Management Standardization, and Rights Protection

1. Improving the Comprehensive Overseas Service System

The "Provisions" focus on the pain points of enterprises going global and build all-around service guarantees: coordinating public service resources such as foreign affairs, legal, fiscal, taxation, and financial affairs to enhance the service capabilities of governments at the provincial level and above; supporting professional institutions such as legal, accounting, and intellectual property firms to improve their international service levels; encouraging financial institutions to provide financing and overseas investment insurance; and relying on industry associations to provide services such as information consultation and rights protection.

2. Perfecting the Full-Chain Regulatory Mechanism

The state improves a classified and graded whole-process regulatory system and strengthens risk prevention and control: clarifying that relevant departments of the State Council formulate outbound investment policies and designate encouraged, restricted, and prohibited categories; connecting with existing systems such as filing for approval and information reporting, requiring investors to truthfully fulfill procedures; improving the security review system for overseas investment to conduct reviews on investments affecting national security; and strengthening the principal responsibility of investors, standardizing business behaviors, and maintaining market order.

3. Strengthening the Protection of Investment Rights and Interests

Aiming at overseas investment risks and discriminatory treatment, the "Provisions" build a multi-layer protection mechanism: strengthening risk monitoring and early warning, and issuing safety alerts in a timely manner; protecting the safety of investors and assets through international treaties and bilateral cooperation; providing consular protection and assistance to safeguard the legitimate rights and interests of Chinese citizens and enterprises; and supporting the resolution of disputes through consultation, mediation, arbitration, and other means.

Countermeasures against Discrimination: Clarifying Response Measures to Maintain a Fair Environment

In response to discriminatory suppression and unreasonable restrictions by individual countries against Chinese investors, the "Provisions" clarify three types of response measures: First, conducting investigations into outbound investment barriers, which may lead to adjustments in country-specific policies and restrictions on the import and export of goods and technologies; Second, implementing reciprocal countermeasures in accordance with the "Anti-Foreign Sanctions Law" against discriminatory measures; Third, prohibiting overseas entities that harm national interests or implement discriminatory measures from investing in China, entering the country, and conducting related transactional cooperation. Relevant departments emphasize that the above measures are protective and defensive in nature and do not affect normal market transactions and the resolution of commercial disputes.

Implementation Significance: Rule of Law Safeguards Steady and Long-Term Progress

As a foundational administrative regulation in the field of outbound investment in China, the "Provisions" achieves full-chain institutional coverage of service, management, protection, and countermeasures. It not only safeguards the legitimate rights and interests of investors and stimulates the vitality of outbound investment but also builds a solid national security defense line and safeguards national development interests. In the future, with the implementation of the "Provisions," China will continue to promote the high-quality development of outbound investment on the track of the rule of law, contributing greater strength to high-level opening up and global economic governance.