How might these rules affect the export of technical services and expertise?

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China’s new national security rules broaden controls to include exporting technical services and expertise

China’s national security regulations taking effect from July 1 broaden existing curbs on cross-border transfers beyond goods and data to include the export of services. This means activities such as sending technical experts abroad or carrying out training overseas fall within the scope of the new framework, which is designed to influence outward investment and the movement of capital and personnel. The rules also authorise the government to review investments or transfers that could impact national security.
Curbs on cross-border transfers now extend to services
The new rules expand controls on cross-border transfers so they are not limited to goods and data. They explicitly cover the export of services, including sending technical experts abroad and conducting training overseas. This shifts the compliance focus from only product and information flows to also include professional services tied to technology and expertise.
Outbound activities must align with an “overall national security concept”
The regulations state that outbound investment should follow an “overall national security concept” and aim to “balance domestic and international considerations.” In practice, this frames how authorities may assess outward transfers that involve people and know-how, not just shipments or data movement. Fields Beijing views as economically and strategically vital, such as artificial intelligence, computer chips, and green technology, are part of the broader context for these controls.
Government review powers apply to transfers that could impact national security
The framework authorises the government to conduct reviews of investments or transfers that could impact national security. That review power applies to the wider set of activities covered by the rules, including service exports like overseas technical training. As a result, technical services and expertise sent abroad may be subject to scrutiny under the national security lens described in the provisions.
Enforcement discretion raises uncertainty for foreign firms
A US-China Economic and Security Review Commission warned that national security-related laws can involve enforcement authorities with “immense discretion” in defining violations. That warning highlights a risk for foreign firms operating in areas affected by these rules, particularly where technical expertise and personnel transfers are involved. With discretion over what counts as a violation, investors and firms may face more uncertainty when planning cross-border technical assignments or training programmes.

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How might these rules affect the export of technical services and expertise?

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