For decades, both the United States and the European Union have accused China of stealing Western technology – from highly advanced robotics and semiconductors to precision mechanics and car parts: Chinese companies have employed prominent engineers, supposedly spied on their Western rivals, and engaged in cyberattacks aimed at gaining access to valuable trade secrets.
Therefore, it seems an irony of history that Beijing is now taking measures aimed at preventing its advanced technologies and talent from migrating abroad.
"The Great Wall of China" is about the best minds
In mid-September, new rules for travel into and out of China came into effect, allowing the Chinese authorities to prevent engineers, entrepreneurs, and other skilled specialists from leaving the country if their expertise in the fields of batteries, rare metals, or artificial intelligence is deemed necessary for “industrial and technological security.”
Beijing has also recently tightened regulations on foreign investments, in order to crack down on Chinese citizens who invest their assets abroad. In addition, sending technical personnel abroad has been restricted.
In this regard, Henry Gao, a professor of law at the Singapore Management University (SMU), believes that these restrictions in their entirety represent “a rare glimpse into the true situation of the Chinese economy.” Regarding this, Gao told DW, "These measures indicate Beijing's deep concern about the weakness of the economy and large capital flows abroad."
He added that Chinese authorities are also determined to "prevent entrepreneurs and specialized skilled workers from leaving the country." The Chinese economy is facing ever-increasing pressures that are increasingly difficult to conceal. Although demand for Chinese exports remains as strong as ever - especially for high-tech products, the collapse of the real estate market has significantly weakened domestic consumption: over the summer, bank lending fell to a record low, and new car sales in August fell by about a quarter compared to the same month last year.
Beijing is hindering acquisitions... and the founders are looking for a way out
These concerns now extend to the migration of individuals and capital. The most famous recent example of this is Manus, an artificial intelligence startup founded by two Chinese nationals in Beijing. Last year, this company moved its headquarters to Singapore, for reasons including avoiding US investment restrictions and enabling it to expand into global markets.
Last December, when Meta, the owner of Facebook, attempted to acquire Manos for $2 billion, Beijing blocked the deal and prevented the company's founders from leaving the country.
This month, rumors spread on Chinese social media that Huawei founder and CEO Ren Zhengfei and his daughter, CFO Ming Wanzhou, may have left China.
This news was reported by Taiwanese and Indian media, but it was not confirmed by Huawei and the Chinese authorities. It is assumed that at least one family member has since made a public appearance in Beijing.
Rich Chinese people face difficulties in transferring capital abroad
Bloomberg Intelligence estimates that about $1 trillion in Chinese assets will have left China in 2025, the largest exodus of “hot” Chinese capital since 2006, the year data collection first began.
Beijing has not tightened the US$50,000 cap on annual foreign remittances that Chinese families are allowed to transfer abroad. But it has stifled the informal ways the wealthy use to bypass that limit, according to Alicia García-Herrero, chief economist for the Asia-Pacific region at French investment bank Natixis.
Regarding this, Garcia Herrero told DW: "They have not changed the maximum limit of $50,000. But they are now putting pressure on individuals and intermediaries through whom the money usually flows."
An entire financial sector has sprung up in China and abroad to help people move their capital abroad. Immigration agencies handle visa and relocation, while offshore brokerages and asset management companies help Chinese citizens invest their wealth abroad.
Companies sometimes use a foreign subsidiary, go public, or even send their own employees in order to move both funds and expertise abroad.
New rules as a catalyst for “creative” solutions?
According to Henry Gao, a professor of law at Singapore Management University, the new restrictions could be counterproductive. As it becomes more difficult to move capital and people abroad, the incentive for those with the means to find alternative routes also increases.
Regarding this, Gao told DW: "In the long run, this could further undermine confidence, accelerate capital flight out of China, and exacerbate the economic problems that these measures were originally intended to reduce."
On the other hand, Garcia-Herrero believes that restrictions imposed on skilled workers will have more serious consequences than those imposed on capital.
In this regard, Garcia-Herrero told DW: "It is still possible to transfer money slowly when obtaining the appropriate permits. But it is not easy to replace an operations engineer who is prevented from boarding a plane or cannot accept a job abroad due to a permanent travel ban."
Artificial intelligence experts require travel permits
This risk is already affecting Chinese artificial intelligence companies, which are moving quickly to catch up with their American competitors in the race to develop the most advanced artificial intelligence systems.
Bloomberg reported in May 2026 that Chinese authorities were now requiring senior AI researchers, founders, and executives at companies like Alibaba and DeepSeek to obtain a permit before traveling abroad.
Last year, some DeepSec employees were asked to surrender their passports, according to technology news website The Information. For its part, Beijing did not confirm or deny this action.
Bloomberg also reported in January 2025 that other technicians face similar pressures, including experts who help foreign companies reduce their dependence on China by setting up factories in Vietnam and India.
Authorities and lawyers are rooting for the consequences
In the case of foreign citizens, Chinese and foreign companies sometimes hide their residency in order to work in China to avoid censorship procedures and visa issuance delays. They may say that the reason for the trip is tourism, to attend business meetings, or to visit a factory, and not for real work.
Before the new restrictions were imposed, international law firms such as DLA Piper advised companies to fill out visa applications “honestly” and “completely,” and warned that any discrepancy between documents and actual activity could result in a ban on entering China for up to five years.
The new regulations stipulate that any visitor must be informed initially if an entry ban is imposed on them. However, Chinese authorities can refrain from reporting if doing so “could harm national security or investigations into criminal cases.”
In an updated travel advisory issued at the beginning of September 2026, the US State Department went further and warned US citizens “to exercise increased caution within China because... the Chinese are enforcing an entry ban into their territory without taking any fair and transparent action in accordance with the law, and there is a risk of being subjected to unwarranted arrest or detention.”
Prepared by: Raed Al-Bash
