China Moves to Strengthen Legal Protection for Overseas Assets
By ZH Sailing Research | March 2026
China is accelerating efforts to establish a legal framework to safeguard its overseas assets and investments, as policymakers seek to provide stronger protection for companies expanding globally.
Lawmakers and business leaders say drafting a law focused on protecting China’s overseas interests would help create a more systematic mechanism to support Chinese enterprises operating abroad, improve risk management and strengthen coordination among government agencies.
The proposal comes as China’s global investment footprint continues to expand, particularly through infrastructure projects and industrial cooperation initiatives linked to the Belt and Road Initiative.
Experts say a comprehensive legal framework could help protect Chinese investments, projects and personnel overseas while providing companies with greater certainty when operating in complex geopolitical environments.
Zhang Shuibo, an economist at Tianjin University, said many large infrastructure projects involve significant capital investment and long development cycles, making them vulnerable to policy changes in host countries.
“A dedicated legal framework would help establish a coordinated mechanism to safeguard overseas assets and address potential risks,” he said.
Rising importance of outbound investment protection
China’s overseas investment activities have expanded steadily in recent years.
According to the Ministry of Commerce of China, China’s nonfinancial outbound direct investment (ODI) reached $145.66 billion in 2025, up 1.3 percent year-on-year.
Investment flows to several regions grew faster than the overall pace. Nonfinancial ODI increased:
41 percent in Africa
20.9 percent in Europe
1.2 percent in Asia
These investments cover sectors such as infrastructure, manufacturing, energy and digital economy projects.
As Chinese companies expand globally, experts say a more comprehensive system for legal protection, risk response and diplomatic coordination is becoming increasingly important.
Aligning with global practices
Major economies have already developed legal tools to protect overseas interests.
The United States Government relies on legislation such as the Foreign Assistance Act, alongside mechanisms including overseas investment insurance and bilateral investment treaties.
Similarly, the European Union has introduced measures such as the Anti-Coercion Instrument to counter economic pressure from foreign governments.
Japan has also strengthened economic security policy through legislation including the Economic Security Promotion Act.
Analysts say China’s proposed legislation could serve as a foundational law coordinating existing regulations and strengthening legal protection for overseas economic activities.
Infrastructure connectivity and strategic security
Infrastructure connectivity remains another key component in safeguarding China’s overseas interests.
Song Hailiang, chairman of China Communications Construction Company, said improving cross-border transport networks would enhance supply chain coordination and strengthen the resilience of overseas operations.
Projects such as the China–Kyrgyzstan–Uzbekistan Railway and the Trans-Caspian International Transport Route are expected to improve connectivity between China and Eurasian markets.
Reliable transport corridors, Song said, also play a strategic role in ensuring the security of energy supplies, resources and overseas personnel.
As China continues expanding its global economic presence, analysts say strengthening legal and institutional frameworks will be critical to supporting companies operating abroad and protecting national economic interests.
Key Data
China Nonfinancial ODI (2025): $145.66 billion
ODI Growth: +1.3% year-on-year
ODI Growth by Region:
Africa: +41%
Europe: +20.9%
Asia: +1.2%
Source: Ministry of Commerce of China
Policy Implications
1. Stronger legal protection for overseas assets
A dedicated law could provide clearer legal backing for Chinese companies operating globally.
2. Institutional response to geopolitical risks
As Chinese investments expand, managing political and regulatory risks is becoming increasingly important.
3. Integration of legal and infrastructure strategies
Legal frameworks combined with cross-border connectivity projects aim to strengthen long-term economic security.
What to Watch
Progress in drafting China’s overseas interests protection law
Policy coordination between commerce, diplomacy and security agencies
Expansion of cross-border infrastructure corridors
Changes in global investment protection mechanisms