China Widens Regulators' Powers to Scrutinize Overseas Tech, Data Deals After Meta-AI Unwinding

BEIJING, June 1, 2026 — China’s State Council issued sweeping new outbound investment rules on Monday, granting regulators broader authority to scrutinize overseas deals involving Chinese investors, technology, data and national security. The move comes one month after Beijing ordered Meta to unwind its acquisition of AI startup Manus. The rules, effective July 1, require government authorization for exports of restricted Chinese goods, technologies, services or related data. They also explicitly bar indirect transfers through cross-border deployment of technical staff, guidance, training programs or other arrangements, closing loopholes previously used to circumvent investment controls.