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China Tightens Controls on Movement of People, Capital and AI Technology

New Delhi, September 6, 2026 (Yes Punjab News)

China is tightening controls over the movement of people, capital and strategic technologies, with new exit-and-entry rules set to take effect on September 15 that could restrict citizens from leaving the country in cases involving risks to industrial or technological security, according to a report.

The measures mark a further expansion of Beijing’s efforts to prevent sensitive technology, data and skilled talent from moving overseas, the Nepal Aaja report said.

The latest restrictions come amid growing concerns in China over the transfer of advanced technologies and expertise to foreign markets. Beijing’s intervention in the proposed $2 billion acquisition of Chinese artificial intelligence startup Manus by Meta has emerged as a prominent example of its increasingly cautious approach towards overseas movement of AI capabilities. China blocked the transaction in April and ordered it to be unwound on national security grounds.

Under the new rules, Chinese citizens could be prevented from leaving the country if they violate technology import or export controls in a manner deemed to endanger industrial or technological security.

Those who commit offences abroad that harm China’s national security or interests could also face exit restrictions lasting between six months and three years after returning to the country, the report said.

The measures form part of a broader effort to retain capital and strategic assets within China. Authorities already maintain controls on outbound capital, including an annual $50,000 foreign-exchange purchase limit for individuals.

Regulators have also increased scrutiny of overseas investments as Chinese investors seek greater exposure to foreign assets.

Bloomberg has reported that Chinese companies, individuals and state lenders accumulated substantial overseas assets from the country’s record trade surplus in 2025, with significant amounts directed towards foreign securities and business investments. China’s trade surplus reached around $1.2 trillion last year, according to the report.

Beijing has simultaneously tightened oversight of outbound investment. Regulations issued by China’s State Council in June prohibit investors from transferring restricted technology, know-how, data and other controlled goods or services through overseas investments.

The rules also provide for penalties including fines, visa restrictions and industry blacklisting.

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