The current regulatory framework for outbound investment in China is primarily composed of the Administrative Measures for Outbound Investment by Enterprises (Decree No.11) issued by the National Development and Reform Commission (NDRC), the Administrative Measures for Overseas Investment (Decree No.3) issued by the Ministry of Commerce (MOFCOM), and the relevant normative documents on outbound investment registration issued by the State Administration of Foreign Exchange (SAFE). These Regulations are the first administrative regulation in this area. The main contents are summarized as follows:

• Elevation of the Legal Effect Level

As an administrative regulation, these Regulations have a higher legal status than existing departmental measures, establishing a unified superior legal basis for full-process compliance regulation of outbound investment.

• Expanded Scope of Application

"Investors" are defined as enterprises, other organizations and individual residents within the territory of China. This marks the first recognition of individual natural persons as eligible outbound investment entities at the administrative regulation level. It is further clarified that specific administrative measures governing outbound investment by individual residents shall be separately formulated by the investment competent department and commerce competent department of the State Council.

In addition, the Regulations incorporate investment in overseas financial markets and reinvestment made abroad using existing overseas equity interests into the regulatory framework.

• Strengthened Control over Cross-border Factor Transfer

In alignment with relevant regimes such as export control, technology export, and cross-border data transfer, the Regulations strictly prohibit investors from transferring, by means of dispatched personnel, overseas technical guidance, cross-border training, or otherwise, any goods, technologies, services, and related data that are prohibited from export or restricted from export without prior authorization.

• Improved Overseas Investment Security Review Regime

The investment competent department and commerce competent department of the State Council shall, together with other relevant authorities, conduct security reviews on outbound investments posing national security risks, as well as the transfer and disposal of overseas assets and equity interests. Investors shall cooperate with reviews and comply with review decisions.

• Establishment of an Investment Rights Protection Mechanism

Where investors encounter investment barriers overseas, the commerce authorities may initiate investigations and formulate policy responses. In response to discriminatory investment measures imposed by other countries, China has the right to take reciprocal countermeasures in accordance with law. Against overseas entities that harm China's interests or discriminate against Chinese investors, restrictive measures may be taken in multiple aspects, including trade, investment, and entry and residence.

• Strengthened Legal Liabilities

The Regulations replace the previous relatively lenient enforcement model mainly based on warnings and revocation of filings, and establish administrative penalties such as orders to cease investment activities, disposal of shares and assets, confiscation of illegal gains, fines, and prohibition from engaging in outbound investment activities for a certain period. They also concurrently link to civil and criminal liabilities. A "dual-penalty system" is adopted, under which not only the investing entity is penalized, but also the directly responsible persons are subject to individual fines.