China Sets New Overseas Investment Rules for Dec. 1, 2026

China’s National Development and Reform Commission (NDRC) issued new overseas investment rules Thursday, Oct. 22, replacing a 2017 framework and setting penalties for investments prohibited by the state.

The measure comprises 76 articles in six chapters covering general provisions, investment guidance and services, oversight, investor protections, legal liability and supplementary provisions. Investors may decide whether to invest abroad and bear the risks and financial gains or losses that follow.

For prohibited overseas investments, the NDRC must order investors to stop the activity and dispose of shares or assets by a deadline, and must confiscate illegal gains. Investors who fail to comply face fines of 0.5% to 1% of the Chinese-side investment amount. Responsible supervisors and other directly responsible personnel may also be fined 50,000 to 100,000 yuan.

The rules take effect Dec. 1, 2026, when the 2017 corporate overseas investment rules are repealed.