China unveils regulation to promote high-standard opening-up and the high-quality development of its outbound investment

Chinese Premier Li Qiang has signed a State Council decree issuing a new regulation on outbound investment, which will take effect from July 1, 2026.

The regulation aims to promote the country's high-standard opening-up and the high-quality development of its outbound investment, protect the legitimate rights and interests of investors and their outbound investment, and safeguard national sovereignty, security and development interests.

Consisting of 34 articles, the regulation highlights efforts to proactively align with international high-standard economic and trade rules, advance high-quality Belt and Road cooperation, and promote international cooperation in industrial and supply chains.

The country will support investors in carrying out overseas investment activities in accordance with market principles and actively participating in international cooperation and competition, according to the regulation.

It stresses the importance of improving comprehensive services, involving relevant authorities, professional institutions, industry associations, as well as trade and investment promotion organizations.

The rules also stress strengthening risk prevention and control, improving the soundness and security of outbound investment, as well as reinforcing investors' primary responsibility and preventing any disruption to the outbound investment market order.

Underscoring active work to negotiate and conclude international economic and trade agreements, the regulation encourages the resolution of investment disputes via various mechanisms.

Efforts should also be stepped up to effectively safeguard the safety and legitimate rights and interests of investors and their outbound investment, as well as the country's overseas interests, according to the regulation.