China issued sweeping new rules on Monday tightening control of overseas deals that involve Chinese investors, technology, data and national security, a month after Beijing ordered Meta to unwind its acquisition of AI startup Manus. The regulations, published by the State Council, or cabinet, seek to influence deals in markets beyond mainland China, including Taiwan, and give Beijing the power to punish foreign firms whose home countries restrict Chinese investment. The framework, which takes effect July 1, provides a comprehensive and formalised legal basis for China to force the unwinding of completed overseas transactions, heightening compliance risks for global investors in sensitive sectors like Chinese tech and AI. Chinese authorities previously said the Meta-Manus deal violated unspecified foreign investment laws, which analysts said discouraged stake transfers by homegrown companies to foreign investors without Beijing's approval.