Commenting on China’s new outbound investment oversight rules, SMU Associate Professor of Finance Fu Fangjian said in an interview with Lianhe Zaobao that the new regulations were likely prompted in part by the recent case in which Chinese authorities blocked Meta’s proposed US$2 billion (S$2.6 billion) acquisition of AI company Manus on national security grounds. Assoc Prof Fu said the rules reflect China’s move toward stricter and more refined oversight of outbound investments involving AI, advanced technologies and cross-border data flows. He stressed that the regulations do not signal a shift toward restricting overseas investment. Assoc Prof Fu added that although the rules introduce an additional administrative process, their impact on overseas projects that align with national industrial policies and strategic priorities is expected to be limited. He noted that in today’s environment of deglobalisation and increasing state intervention in cross-border investment, stronger government oversight has become a global trend rather than an exception.
