China's NDRC Proposes New Rules for Outbound Investment

The National Development and Reform Commission of China released draft regulations on August 21 to revise the governance of outbound investment. The proposed rules aim to better protect investor assets and mitigate risks associated with overseas operations by expanding the scope of the existing 2018 regulatory framework.

Under the new draft, the reporting requirements will extend to investments made by individuals, whereas previous rules focused on companies and non-corporate organizations. A central feature of the update is the creation of a reporting system for major adverse events. This system specifically targets situations where foreign regions implement discriminatory measures or demand the disposal of assets, data, or technology from Chinese entities.

Additionally, the agency will introduce a preliminary reporting system for large-scale projects that could potentially impact China's diplomatic relations. These measures are designed to increase protections against political instability within host countries. The National Development and Reform Commission is seeking public comment on these draft rules until September 20.