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China increases scrutiny of overseas investments in media, weapons

China’s state planning body added industries including news media and weapons development to a list of “sensitive” sectors for offshore investment on Sunday, meaning that it will increase its oversight of any deals in those areas, Reuters reports.

Development of cross-border water resources has also been classed as “sensitive,” a decision that was first proposed when draft guidelines were released in November.

The guidelines will bring significant change to Chinese outbound investment, since individuals as well as companies will now need approval from the government for deals in areas deemed sensitive. Domestic firms will also need approval for any deal worth more than $300 million.

Real estate, hotels, movie studios and sports club also remain restricted, according to the new guidelines, which will come into effect on March 1.

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