New regulations on outbound investment; Qiushi on future industries; Chip export control dysfunction; Shangri-La Dialogue; EU-China

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There was no publicized May Politburo meeting, or any sign of Xi visiting North Korea last week. Today’s top items:1. New regulations on outbound investment - The State Council released the State Council Regulations on Outbound Investment (国务院关于对外投资的规定), consisting of 34 articles. Premier Li Qiang signed State Council Order No. 837 promulgating the text on May 5, and the public release came on June 1, with a joint Q&A from the Ministry of Justice, NDRC, and MOFCOM. The regulation takes effect July 1. I have posted a translation of the regulations here and of the Q&A here. Most of the content consolidates existing laws and regulations. The Q&A says explicitly that the prior model — outbound investment governed “principally on the basis of departmental rules and normative documents” — “no longer meets current needs” given “geopolitical risks” and intensifying “international competition.” This was in the State Council’s 2025 and 2026 legislative work plans. NDRC and MOFCOM say more implementing rules will follow.Some of the interesting sections:Article 13 intends to plug workarounds, including ones Manus and its investors used:Article 13. In conducting outbound investment activities, investors shall not export or use goods, technologies, services, or related data whose export is prohibited by the state, nor shall they export or use goods, technologies, services, or related data whose export is restricted by the state without authorization; they shall not transfer to other countries (or regions) any goods, technologies, services, or related data whose export is prohibited by th…