China has formalized new outbound-investment review rules that codify the 'technology-tracing' approach used by the NDRC to block Meta's $2bn acquisition of AI-agent startup Manus in April. The framework asserts Chinese regulatory jurisdiction over cross-border deals based on where technology was originally developed, not where the acquiring company is legally incorporated. This effectively closes the long-used strategy of Chinese AI startups restructuring offshore (e.g., in Singapore or Cayman Islands) before selling to US buyers. The rules cover technology, IP, and key personnel as review triggers, and take effect immediately. Combined with travel restrictions on top AI researchers and instructions to reject US capital without clearance, Beijing is systematically closing outbound channels for Chinese AI capability — a mirror to Washington's inbound export controls targeting China.
