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China Updates Outbound Investment Rules with National Security Lens

Key Takeaways

  • The new framework expands oversight of overseas investment activities, introducing a multi-pronged classification system.
  • The regulation enables retaliation against discriminatory measures impacting China’s outbound investment, embedding outbound investment into China’s anti-sanctions toolkit.
  • Companies involved in Chinese ODI should align supporting services with the new rules and build China-side risks, including extended approval timelines and security reviews, into transaction planning.

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