Recently, the General Office of the State Council has forwarded the Guiding Opinions on Further Guiding and Regulating the Overseas Investment Direction (the "Opinions").
The Opinions propose that efforts should focus on pressing ahead outbound investment on infrastructure that favors the "Belt and Road Initiative" and the interconnection of different infrastructure in neighboring countries along the route, strengthening the investment collaboration with overseas enterprises holding high and new technologies or specialized in advanced manufacture, and making progress in overseas investment in services sectors in an orderly manner. Further, the Opinions clarify that the restricted overseas investment includes five categories, such as "overseas investment in the real estate sector, hospitality industry, cinemas, entertainment and sports clubs", "overseas investment to establish an equity investment fund or investment platform abroad which carries out no concrete business project", and "overseas investment not in line with requirements on environmental protection, energy consumption and security as stipulated in the investment destination country". Moreover, the Opinions prescribe that the prohibited overseas investment comprises five categories, such as "overseas investment in relation to the export of core military technologies and products unauthorized by the State" and "overseas investment that takes advantage of any technology, processes or product, the export of which is banned in China".