China tightens exit rules to curb technology and talent outflows

China has strengthened its immigration regulations to allow authorities to bar citizens from leaving the country if they are deemed a threat to industrial or technology security. The move is widely seen as an effort to prevent the outflow of key talent and proprietary technology in sectors such as semiconductors and AI amid intensifying Sino-American competition for technological supremacy.

China's State Council promulgated the revised immigration management regulations on Friday and announced Saturday that they will take effect Sept. 15, according to state-run Xinhua News Agency and Yonhap.

Under the new rules, relevant government agencies may restrict a citizen's departure if the person is found to have violated export control or technology import-export management regulations in a way that could harm the country's industrial or technology security.

The regulations also stipulate that Chinese nationals who commit acts abroad that damage national security or national interests may face exit bans of up to three years upon returning to China.

Entry rules for foreigners were also tightened. Foreign nationals who submit false documents or make false statements when applying for a Chinese visa or entry permit may be barred from entering the country for one to five years.

The new regulations extend China's broader push to designate advanced technology as a core domain of national security and to tighten controls accordingly.

China significantly expanded the definition of espionage through a 2023 revision of its anti-espionage law, extending the scope of national security to cover economic and technological areas including data, technology, supply chains and key industries. It has also strengthened its export control law and technology import-export management regime, and has now codified technology security as explicit grounds for exit restrictions within its immigration rules.

The new regulations particularly reinforce China's policy of blocking the outflow of key talent and core technology in advanced industries such as semiconductors and AI as Sino-American technology rivalry intensifies.

The Financial Times reported in March that Chinese authorities had banned two co-founders of Chinese AI startup Manus from leaving the country while reviewing Meta's bid to acquire the firm.

The Chinese government subsequently blocked Meta's acquisition of Manus and called for the deal to be withdrawn. Authorities did not disclose specific reasons at the time, but the move was widely interpreted as an attempt to prevent the transfer of key AI talent and intellectual property to an American company.