The State Council of China has issued the "Regulations on Outbound Investment," set to take effect on July 1, 2026. Signed by Premier Li Qiang, the regulations apply to enterprises, organizations, and individual residents within China, granting them the right to independently conduct outbound investments while adhering to legal and regulatory requirements. The regulations emphasize the importance of fulfilling social responsibilities and safeguarding national security. The new framework aims to enhance China's overseas service system and refine regulatory mechanisms, including approval and security review processes. Violations of these regulations could result in penalties such as fines and mandatory disposal of equity and assets. Additionally, the regulations outline consular protection for Chinese citizens and enterprises abroad and establish countermeasures against discriminatory actions by other countries.