China tightens rules on outbound capital

China has unveiled a revised rule for regulating outbound investment, reports the South China Morning Post. The move requires investors to report major adverse developments more diligently, including foreign demands to hand over technology or dispose of stakes.

The new rule, announced by the National Development and Reform Commission (NDRC) on Thursday, aimed to better prevent and mitigate rising overseas risks and protect Chinese interests, according to the government agency.

“In recent years, a small number of countries and regions have adopted discriminatory measures, with some demanding that Chinese investors hand over technology or data, or dispose of equity stakes and assets, undermining Chinese interests,” the NDRC said in a statement on Thursday.