Wealthy Chinese, tech talent confront tighter borders as Beijing widens exit controls

Passengers board a ferry after customs clearance at Lianyungang International Passenger Station in Lianyungang, China, on October 21, 2024. Costfoto | Nurphoto | Getty ImagesChina's new border-control regulations are designed to keep two of its most valuable assets from leaving the country: money and talent. The rules, issued by the State Council and taking effect Tuesday, give authorities explicit legal power to block people from leaving the country – turning a patchwork of ad hoc travel bans into a permanent tool for stemming capital and talent flight. Authorities can bar Chinese nationals from departing over export-control or technology-transfer violations deemed to threaten national security. The new rules also add pressure on wealthy households already facing a widening tax dragnet, along with private bankers, trust companies, and immigration agencies that help move their money and families abroad. "The goal is to restrict outbound personnel flows, so as to keep home the capital and talent that might otherwise leave with them," said Neo Wang, China strategist at Evercore ISI. Both resources are critical to Beijing's push for innovation, productivity and new growth drivers as i...