New Delhi, July 1 -- China is intensifying its scrutiny of investments overseas with broad "national security" regulations taking effect from Wednesday. According to the State Council's 34-article Regulation on Overseas Investment authorises "necessary and defensive measures" to protect Chinese investors and interests overseas in response to foreign trade-related barriers.

Under the new rules, originally announced on June 1, the government will probe trade-related investment barriers imposed by foreign countries and coordinate retaliatory responses. Officials labelled the law a "milestone in the history of China's outbound investment development".

Also known as the 2026 regulation on outbound direct investment (ODI), Beijing's new law r...