China's latest move to regulate outbound investment will bolster high-level opening-up, expand international investment cooperation and better safeguard the legitimate rights and interests of Chinese companies operating overseas, said market watchers and business leaders.

On Monday, a new regulation on outbound investment was unveiled by the State Council, China's Cabinet, which will take effect on July 1.

The regulation, consisting of 34 articles, comes at a time when the nation's outbound investment is continuing to grow, with Chinese companies expanding their presence in sectors ranging from manufacturing to green energy and digital technologies.

Data from the Ministry of Commerce showed that China's nonfinancial outbound direct investment increased 1.3 percent year-on-year to $145.66 billion in 2025, while in the first four months of this year, such investment across all industries totaled 429.42 billion yuan ($63.5 billion), up 3.9 percent year-on-year.

Experts said the regulation is expected to provide a clearer institutional framework for overseas investment against a backdrop of rising protectionism and geopolitical uncertainties. The new rule will also help improve investment quality, deepen international cooperation and promote mutual benefits, they added.

Wei Jianguo, former vice-minister of commerce, said the regulation signals China's determination to be an active participant in global economic integration despite mounting geopolitical challenges.

Liu Ying, a researcher at Renmin University of China's Chongyang Institute for Financial Studies in Beijing, said, "By promoting high-quality outbound investment and strengthening regulatory safeguards, China aims to offer greater certainty for long-term business planning, deepen economic ties with overseas markets and help anchor global growth amid a volatile external environment."

According to the regulation, China will continue to advance high-quality Belt and Road cooperation, strengthen bilateral and multilateral investment cooperation mechanisms and play a more active role in shaping international investment rules.

The regulation also establishes clear safeguards for national security and development interests. Investors cannot export or use goods, technologies, services and related data that are prohibited from being exported under Chinese law. In addition, the export or use of restricted goods, technologies, services and related data requires prior authorization from relevant authorities.

Lyu Yue, a professor of economics at the University of International Business and Economics in Beijing, said the regulation represents further refinement of China's outbound investment governance framework, and is aimed at helping companies pursue overseas opportunities while managing potential risks more effectively.

Xi Guohua, chairman of Chinese financial conglomerate CITIC Group Corp, said that clearer compliance requirements will help Chinese companies better identify sensitive sectors, avoid regulatory missteps and protect their long-term interests in overseas markets.

In a report released in late March, the Chinese Academy of International Trade and Economic Cooperation said the need for stronger safeguards for outbound investment has increased because, in recent years, some countries have stepped up investment reviews and regulatory scrutiny of foreign companies on "national security" grounds.

In response to these challenges, the regulation also authorizes countermeasures against discriminatory restrictions, arbitrary business disruptions and other practices that undermine the interests of Chinese investors abroad.

Sherri He, managing director for China of Kearney, a United States-based management consultancy, said that as global markets become more complex and consumer demands evolve faster, Chinese companies need stronger risk management and governance capabilities to support sustainable, high-quality global expansion.

zhongnan@chinadaily.com.cn