China’s state planner Sunday listed nine areas where outbound investment is considered "sensitive," where higher approval barriers apply as the nation tries to curb irrational and excessive spending to reduce risks and protect national interests.

Research, manufacturing and maintenance of weaponry, utilization of cross-border water resources and news media are covered in the order by the National Development and Reform Commission (NDRC).

Along with real estate, hotels, cinema lines, entertainment, sports clubs as well as overseas equity investment funds without specific projects tied to the real economy – six areas of deals that China’s Ministry of Commerce expressively set out to restrict in a guidance published in August last year, investments in these nine areas will be subject to greater scrutiny by regulators starting March 1st, when the newly established list comes into effect.

The sectors named today should not come as a surprise to potential Chinese buyers as authorities have long wagged a finger at deals in these areas which are either highly risky or may pose a threat to national security. 

In a draft version of cross-border investment guidelines issued by the NDRC in November, weaponry, cross-border water resources and news media were raised as examples of undertakings that could be considered “sensitive,” though the guidelines separately listed industries where investments would be "prohibited" or "restricted."

Today’s catalogue comes as the draft in November promised to follow up with a  Sensitive Industry Directory.