China used foreign tech to rise, but now it's slamming the door

China, once a keen learner of Western technology, is now shifting gears to protect its own innovations. New outbound investment rules, effective July 2026, signal a move from technology absorption to stringent protection. Beijing now views its advanced AI, chip, and green tech as strategic assets, aiming to prevent its hard-won know-how from leaving the country amidst escalating global tech competition.