China Focus: China unveils regulation on outbound investment-Xinhua

China Focus: China unveils regulation on outbound investment

Source: Xinhua

Editor: huaxia

2026-06-01 20:23:15

BEIJING, June 1 (Xinhua) -- Chinese Premier Li Qiang has signed a State Council decree issuing a new regulation on outbound investment, which will take effect from July 1, 2026.

The regulation aims to promote the country's high-standard opening up and the high-quality development of its outbound investment, protect the legitimate rights and interests of investors and their outbound investment, and safeguard national sovereignty, security and development interests.

Consisting of 34 articles, the regulation highlights efforts to proactively align with international high-standard economic and trade rules, advance high-quality Belt and Road cooperation, and promote international cooperation in industrial and supply chains.

Senior officials with China's Ministry of Justice, the National Development and Reform Commission, and the Ministry of Commerce said the new regulation represents a major rule-of-law practice in China's unwavering commitment to expanding opening up, and marks a milestone in the history of China's outbound investment development.

According to the regulation, the country will support investors in carrying out overseas investment activities in accordance with market principles and actively participating in international cooperation and competition.

"Investors have the legal right to independent decision-making in outbound investment, bearing their own risks and assuming sole responsibility for their profits and losses," the officials noted.

They added that the regulation also stipulates that in conducting outbound investment and related activities, investors shall comply with laws, regulations and international practices, respect local customs and cultural traditions, observe business ethics, act in good faith and engage in fair competition, fulfill social responsibilities and uphold the national image.

The regulation stresses improving comprehensive services, involving relevant authorities, professional institutions, industry associations as well as trade and investment promotion organizations.

For instance, the country will provide service support through coordinated services in areas including foreign affairs, legal affairs, finance and taxation, trade, logistics and customs, among others.

Meanwhile, professional providers of consulting and evaluation services, legal services, accounting and auditing, credit rating, mediation and arbitration, and intellectual property services, are encouraged to improve their international service capabilities and provide high-quality professional services, the officials said.

The rules also stress strengthening risk prevention and control, improving the soundness and security of outbound investment, as well as reinforcing investors' primary responsibility and preventing any disruption to the outbound investment market order.

Underscoring active work to negotiate and conclude international economic and trade agreements, the regulation encourages the resolution of investment disputes via various mechanisms.

According to the officials, the regulation has also proposed necessary and defensive measures to protect the legitimate rights and interests of Chinese investors and their outbound investments, as well as to safeguard national overseas interests from threats and infringements.

They include government-initiated probes into trade-related investment barriers set up by foreign countries and regions, and the Chinese government's adoption of countermeasures against discriminatory prohibitions, restrictions or other similar measures adopted by foreign countries and regions or international organizations in investment and business operations.

Recent government data showed that China's outbound direct investment across all industries had reached 429.42 billion yuan (about 63 billion U.S. dollars) during the first four months of 2026, representing an increase of 3.9 percent year on year.