China enforces new regulations on exit restrictions, protects technology through economic security

[Beijing, Shanghai Current Affairs] On the 15th, China enacted ``immigration control regulations'' that allow Chinese nationals to be restricted from leaving the country if there is a risk of threatening nationally strategically important industries or technology. Entry conditions for foreigners have also become stricter. From the perspective of economic security, the movement of people across borders will be monitored. Companies related to artificial intelligence (AI) and semiconductors, including Japanese companies, are rushing to have their engineers go on business trips and check visas.

Economic security also targets the movement of people Strengthened exit controls and technology protection - China to take effect in September

The battle for high-tech supremacy with the United States is on the agenda. Prohibits Chinese nationals from leaving the country in violation of export control and technology transfer laws. Under the entry clause, the country can deny visas and entry to those subject to counter-sanctions from China and those associated with companies on the "untrustworthy" list. Chinese and foreign nationals can also be required to present their own electronic data when applying for entry/exit. This also applies to foreign nationals' stay and residence applications.

At Shanghai Pudong International Airport on the first day of enforcement, there were no signs announcing the new regulations, and the situation remained the same as usual. A Chinese man heading to New Zealand said, ``I don't know the details.''

However, there remains a sense of uncertainty regarding operational aspects. The government of the province where they live has also been given the power to ban Chinese nationals who have committed illegal acts abroad from leaving the country. It will also crack down on fraudulent acquisition of overseas permanent resident status by public officials and military personnel. As Japan-China relations cool down, Japanese companies are bracing themselves for ``arbitrary decisions'' (one major machinery company), as local discretion could expand depending on the interpretation of ``national security.''

Multinational companies in Japan, Taiwan, South Korea, and other countries are concerned about not only checking employment contracts but also managing computers and smartphones. The Japan External Trade Organization (JETRO) is strengthening information provision. International law firm DLA Piper believes that the departure of employees stationed in Japan when they go to China is also a cause for concern.

In China, information was circulating on social media that ``it will be difficult for citizens to leave the country,'' and on the 10th, a government-affiliated website tried to put out the fire, saying ``this is a misreading of the new regulations.'' On the other hand, the government has been working on legislation to prevent technology leakage, including enacting regulations to strengthen supervision over foreign investment in July. It is clear that he comprehensively captures cross-border activities involving people, goods, and money.