Author: Liu Honglin, Manqun Blockchain
The State Council has issued the "Regulations on Foreign Investment," to take effect on July 1, 2026.
This is not a statement of "cannot go overseas."
More precisely, it serves as a reminder to businesses and individuals that overseas investments must adhere to established rules.
When reviewing this new regulation, keep these key points in mind:
1️⃣ Not only enterprises are regulated—domestic enterprises, other organizations, and individual residents are all included in the investor scope.
2️⃣ Not only cash transfers count—any direct or indirect acquisition of rights related to overseas companies or assets, including asset investments, obtaining equity, financing, or guarantees, must be evaluated.
3️⃣ Companies shouldn't just draw equity structure charts—they must also clearly map out the entities, approval and filing processes, fund pathways, technical data, and security reviews.
4️⃣ Don’t just focus on returns—first ask yourself: Can you afford to buy? How will you withdraw your funds? What are you actually buying? And who can you contact if something goes wrong?
5️⃣ The consequences of illegal activity are severe—beyond fines, you may also be restricted from continuing foreign investments.
Investing abroad isn't impossible—it just shouldn't be done based solely on business opportunities.
The above is for general educational purposes only and does not constitute legal advice or investment advice.
