China Strengthens Outbound Investment Rules Following Meta Controversy

China issued new rules on Monday to broaden regulators’ oversight of overseas deals involving Chinese investors, technology, data, and national security. The rules, set by the State Council, will be effective from July 1 and include requirements for authorization on exports of restricted Chinese goods, technologies, services, or related data. This move comes a month after Beijing’s directive to reverse Meta’s acquisition of AI startup Manus, signaling a tightening of controls in the aftermath of the controversy. The updated regulations empower Chinese authorities to scrutinize and approve transactions involving Chinese entities to safeguard national interests. Notably, the rules aim to…