China’s new ‘digital iron curtain’: Beijing tightens grip on people, money and AI

China’s new ‘digital iron curtain’: Beijing tightens grip on people, money and AI
New Delhi , Sep 6 : China is tightening controls over the movement of people, capital and strategic technologies, with new exit-and-entry rules set to take effect on September 15 that will allow authorities to restrict citizens from leaving the country in cases involving risks to industrial and technological security, a report has said.

The move marks a further expansion of Beijing's efforts to prevent sensitive technology, data and talent from moving overseas, according to the Nepal Aaja report.

The latest measures come amid growing concern in Beijing over the loss of advanced technology and skilled personnel to foreign markets. The government's intervention in the proposed $2 billion acquisition of Chinese AI startup Manus by Meta has emerged as a prominent example of the increasingly sensitive approach towards the overseas movement of Chinese AI capabilities. China blocked the transaction in April and ordered it to be unwound on national security grounds.

Under the new rules, Chinese citizens may be prevented from leaving the country if they violate technology import or export controls in ways that could endanger industrial or technological security.

People who commit offences abroad that harm China's national security or interests could also face exit restrictions lasting between six months and three years after returning to the country, the report said.

The restrictions are part of a broader effort by Beijing to prevent capital and strategic assets from leaving China. Chinese authorities have long maintained controls on outbound capital, including an annual $50,000 foreign-exchange purchase limit for individuals. More recently, regulators have intensified scrutiny of overseas investment as demand from Chinese investors for foreign assets has increased.

The scale of China's external financial flows has added to those concerns. Bloomberg reported that Chinese companies, individuals and state lenders accumulated substantial foreign assets from the country's record trade surplus in 2025, with much of the money moving into overseas securities and business investments.

China's trade surplus reached about $1.2 trillion last year, the report noted.

Beijing has simultaneously tightened oversight of overseas investment. Regulations released by China's State Council in June prohibit investors from exporting restricted technology, know-how, data and other controlled goods or services through outbound investments. The rules also provide for penalties including fines, visa restrictions and industry blacklisting.

Note: The content of this article is sourced from a news agency and has not been edited by the ap7am team.
China
Beijing exit-and-entry rules
digital iron curtain
Chinese AI technology security
China capital flight restrictions
Meta Manus acquisition block
China national security laws
technological

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