State Council Regulations on Outbound Investment
June 15, 2026
China Macro Group | policy · business · strategy
What it is
Effective July 1, China’s State Council has enacted the country's first comprehensive legal framework for outbound investment, introducing an approval, reporting, and security review cycle.
Why it matters
The framework includes countermeasure clauses granting regulators discretionary power to restrict foreign firms' China market access if their home state is deemed discriminatory. It also tightens technology transfer controls on staff secondments and overseas training.
Implications to Swiss business
The framework introduces reciprocity risk: a state's restrictions on Chinese investors could trigger equivalent restrictions on its own firms in China.
Author:
Max de Bruyn Gomez
Analyst at CMG