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China expands curbs on foreign deals, tech transfer after Meta-Manus block

The rules add approval requirements for restricted technology and data transfers and could force companies to rethink cross-border staffing and training deals.

  • On Monday, China's State Council issued sweeping rules tightening control over overseas transactions involving technology, data, and national security, effective July 1.
  • These regulations follow Beijing's recent order forcing Meta to unwind its acquisition of Manus, a case authorities cited as a reference point for scrutinizing foreign control over Chinese-developed AI capabilities.
  • New rules specifically ban cross-border talent transfers without approval, targeting practices like "Singapore-washing," as investors "shall not transfer goods, technologies, services and related data" through indirect arrangements.
  • Global investors face heightened compliance risks under the new regime, which includes provisions allowing Beijing to ban foreign entities from trading with China if their home countries restrict Chinese investment.
  • Companies must now reassess how they structure overseas operations and technology licensing, as this development positions China to draw a firmer line around the movement of technology beyond its borders.
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The Chinese Government has published a new regulation which, despite granting independent decision-making, provides for investigations and sanctions for transfers of assets affecting national security.

·Portugal
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ReutersReuters
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China expands curbs on foreign deals, tech transfer after Meta-Manus block

China issued sweeping new rules on Monday tightening control of overseas deals that involve Chinese investors, technology, data and national security, ​a month after Beijing ordered Meta to unwind its acquisition of AI startup Manus.

·New York, United States
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Invezz broke the news on Monday, June 1, 2026.
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