The Chinese government is tightening its outbound restrictions on key talents in the fields of artificial intelligence (AI) and chips, with the measures now extending to the immediate family members of key technology personnel, including spouses and children. Some family members of individuals identified as strategically important figures, even for short-term trips abroad, now require prior approval from Beijing.
According to reports from Bloomberg, sources familiar with the matter revealed that Chinese government departments have recently begun conveying the expanded restriction measures to affected individuals, including founders of prominent startups and executives of companies with strategic significance in the field of artificial intelligence.
Sources also indicated that immediate family members of executives in the AI and chip industries, such as spouses and children, now need approval from Beijing even for short-term trips abroad.
This signifies that China’s outbound control over top technology talents is further extending from individuals to their family members.
While not a complete travel ban, this new regulation could potentially have further chilling effects on the tech industry that is already facing restrictions.
According to Bloomberg’s report in May, China has restricted top AI professionals from private companies such as Alibaba Group Holding Ltd and DeepSeek from traveling abroad since the beginning of this year.
Sources mentioned that it is currently unclear whether all AI and chip industry personnel subject to restrictions will have their family members abide by the same regulations.
Due to the sensitive nature of the issue, these sources requested anonymity. Two of them stated that government departments have already informed some related individuals that approval is required if their family members intend to travel abroad.
Sources indicated that Beijing plans to gradually expand the list of eligible individuals over time.
For years, Beijing has imposed outbound restrictions on key personnel, including renowned university researchers, nuclear scientists, and executives of state-owned enterprises, with their family members also subject to corresponding limitations.
The Chinese government is now shifting its focus to talent in the private sector, with top artificial intelligence and technical engineers in China being deemed as “strategic assets.”
Many of China’s top AI talents have emerged post the ChatGPT era and predominantly come from domestic tech giants or private startups.
Amid ongoing tech competition between China and the US, Beijing’s concerns over the outflow of core technologies and talents are increasing.
After US company Meta’s $2 billion acquisition of the Chinese-background AI agent startup Manus headquartered in Singapore, Beijing demanded in April that Meta revoke the transaction and further restricted American funds from entering sensitive tech enterprises.
Sources stated that the policy restricting AI talent from leaving the country may not directly relate to the Manus deal, but preventing leakage of critical technology and talent has always been a key objective of relevant policies.
Such measures could also prompt Chinese tech talents with intentions of overseas development to choose between staying in China or seizing opportunities to go abroad early.
Meanwhile, the Chinese government has recently strengthened tax supervision over high-income and high-net-worth individuals.
According to Bloomberg, tax authorities in many regions of China have established inter-departmental working groups to conduct more sophisticated tax oversight over wealthy individuals and large enterprises. Some working groups even adopt a “one-on-one” approach to specifically manage tax affairs for individual millionaires.
These actions not only involve domestic income but also extend to overseas assets and trust income. Reports suggest that China has previously adjusted regulations concerning some offshore trusts, bringing foreign assets and trust income under stricter tax supervision. Moreover, local tax authorities are pursuing historical tax payments from enterprises and scrutinizing overseas market assets held by Chinese residents, including in Hong Kong.
Faced with more stringent tax scrutiny, some high-net-worth individuals are exploring different approaches to cope, including obtaining foreign passports in advance, selling some stocks to raise funds, and so on.
Some business owners are negotiating with local tax authorities, using the relocation of enterprises to other cities as bargaining chips in negotiations with local tax officials. Conversely, some high-net-worth families opt for managing their assets through more discreet financial institutions to reduce the likelihood of additional scrutiny.
From restricting the outbound travel of tech talents and their family members to strengthening tax supervision over domestic and overseas assets of high-net-worth individuals, the Chinese government’s management of key talents, capital, and strategic technologies is displaying an increasingly strict trend in recent years.