China enforces stricter overseas investment rules targeting AI and chip sectors

China has introduced sweeping new regulations to tighten oversight of its outbound investments, with a focus on sensitive technology areas such as artificial intelligence and semiconductors. The rules took effect on Wednesday and are primarily aimed at protecting national security and preserving China's technological edge amid intensifying rivalry with the United States. While Beijing frames the measures as a means to improve the quality of outward investment, analysts warn they could hinder Chinese companies' global expansion ambitions. Foreign partners seeking access to Chinese capital may also face greater hurdles, particularly around technology transfers. The move carries broader geopolitical implications as the US-China tech competition continues to escalate.