China's State Council unveiled new rules requiring national security screening for companies seeking overseas investments, following April regulations that block foreign supply chain departures. $2 billion Meta acquisition of Manus already blocked. Beijing building economic fortress amid rising tensions with Europe and US, marking end of open markets era that fueled China's rise.

The new framework extends China's growing arsenal of export controls and trade penalties. Authorities now scrutinize outbound investments, categorizing them as encouraged, restricted or prohibited. Unlike US and EU restrictions, Beijing defines national security broadly, affecting talent movement and capital flow across borders. Foreign businesses worry data from Chinese operations could be included.

Chinese policymakers aim to keep money, talent and intellectual property competitive fields from leaving the country. These rules complicate Beijing's push for companies to find overseas markets as exports hit record levels. The vague definition of national security concerns creates uncertainty for investors, signaling the end of the "Chimerica" economic model once envisioned by global markets.

The rules represent a coordinated effort different from China's earlier outbound investment restrictions, which focused on financial risks rather than national security. Beijing cites "profound changes unseen in a century" as justification, suggesting this economic fortress approach will endure regardless of international criticism.