China Introduces New Outbound Investment Laws To Prevent U.S. Decoupling

China has introduced stringent new outbound investment laws to prevent capital from flowing out unchecked, especially to the U.S., in a bid to halt economic decoupling. The rules, published on June 1 by China’s State Council, aim to scrutinize overseas investments more closely, ensuring they align with national security interests. This move underscores Beijing's efforts to tighten control over its financial outflows amid rising geopolitical tensions and the U.S. push for decoupling in critical sectors, signaling a shift in China's long-standing openness to foreign investment.

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