China Enforces New Exit and Entry Rules, Expanding Controls to Prevent Technology Outflows Amid High-Tech Rivalry; Japanese Companies and Others Step Up Response (Jiji Press)

On the 15th, the Chinese government formally brought the Exit and Entry Administration Regulation into force. The regulation applies when there is a risk of threatening strategically important industries or technologies, and introduces new provisions allowing departures to be restricted while also tightening provisions governing foreign nationals' entry. As a result, cross-border movements of people will be monitored from an economic security perspective.

AI and semiconductor-related companies, including Japanese companies, are expected to face a growing need to expedite reviews of engineers' business travel and visas. Against the backdrop of the US-China high-tech rivalry, measures may be taken including exit bans for violations of laws and regulations concerning export controls and technology transfers, as well as visa refusals for individuals connected with companies on the Unreliable Entity List.

Uncertainty remains over implementation. In addition to newly granting provincial governments where individuals reside the authority to decide on exit bans, the rules crack down on the improper acquisition of permanent overseas residency by public officials and military personnel. Concerns are spreading on the ground that local discretion could expand depending on how existing operational rules are interpreted, forcing companies to respond by strengthening controls.

The Japan External Trade Organization (JETRO) and international law firms are also expected to strengthen their guidance and responses. China's tighter regulations will entail stricter procedures and monitoring when exit and entry applications are submitted in the future, potentially affecting travel plans for personnel, particularly at Japanese companies.