China Strengthens Restrictions on Outbound Investments Amid Tech Rivalry with U.S.

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China’s State Council has announced new rules to safeguard the economy by restricting the export and use of state-restricted goods, technology, services, and data. These rules, effective from July, also prohibit indirect transfers of restricted technology and data through cross-border personnel deployments, training programs, or technical guidance. Violations of these rules will result in penalties such as fines and investment bans. The announcement comes in the wake of China’s decision to block Meta Platforms’ acquisition of Manus, an artificial-intelligence startup, on national-security grounds. Manus, founded in China in 2022, shifted its operations to Singapore after receiving funding from U.S. venture-capital…

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