China's Entry and Exit Administration Regulations, which take effect on the 15th, explicitly provide for restrictions on departures to prevent the outflow of critical national industries and technologies. The rules are also expected to cover employees of foreign companies, including Chinese engineers, while many aspects of their implementation remain unclear.
China's Entry and Exit Administration Regulations, which take effect on the 15th, provide that departures may be restricted when there is a risk to the security of critical industries and technologies. From an economic security perspective, the rules aim to prevent the outflow of advanced technologies by imposing tighter restrictions on the movement of personnel.
The regulations are said to cover Chinese engineers working for foreign companies, including Japanese companies. Many aspects of their implementation remain unclear, heightening concerns among companies. The regulations explicitly state that the Ministry of Commerce and other authorities may ban departures in the event of a violation, and there may be no requirement to notify individuals of the reasons, except in certain cases such as criminal investigations.
Chinese authorities may request electronic data from people entering or leaving the country, and controls on immigration screening for foreign nationals and travel intermediaries will also be tightened.
China is competing fiercely with the United States in fields such as AI and robotics and is wary of the outflow of technologies and talent. In July, it implemented regulations governing oversight of outbound investment, among other measures, as it advances the development of a legal framework to protect its domestic technologies.