China expands exit bans to safeguard industrial and tech security

China has implemented sweeping travel restrictions and exit bans on its citizens to safeguard what it defines as national security. These measures specifically target individuals deemed to have endangered the country's industrial or technological security, granting authorities expanded power to prevent citizens from leaving the country.

The scale of these restrictions has grown exponentially. According to data from China's Supreme Court database, records mentioning exit bans rose from just 89 in 2016 to 188,760 last year. This trend is further reflected in the judiciary, where the proportion of civil verdicts involving exit bans increased from approximately 0.23% in 2019 to 7.3% in 2025.

The push for tech sovereignty

This crackdown occurs as tensions between China and Western powers intensify over technology transfers and national security. The Chinese government is increasingly focused on securing its technological sovereignty, viewing the movement of highly skilled personnel as a potential risk to its strategic interests. Human rights organizations, including Safeguard Defenders, have previously noted a steady expansion in the use of exit bans by the Chinese Communist Party to control citizens and prevent the flight of political dissidents or intellectual property.

Impact on the tech sector

These restrictions signal a tightening of control over China's elite workforce and the broader tech sector. By preventing experts and executives from departing, Beijing aims to curb "brain drain" and stop the leakage of sensitive industrial secrets to foreign competitors, particularly in the United States.

The real-world consequences of this policy are already evident in high-stakes corporate deals. Beijing recently forced the unwinding of a $2 billion acquisition of the AI startup Manus by Meta. Reports indicate that the founders of the startup were barred from leaving China as part of the government's effort to lock in critical capital and human expertise.

Future outlook

As China continues to prioritize industrial security, the tech industry can expect further volatility in cross-border collaborations and acquisitions. The expansion of these bans suggests that the boundary between corporate activity and national security is blurring, making it increasingly difficult for Chinese tech entrepreneurs to operate on a global stage. It remains to be seen how these restrictions will affect foreign investment in Chinese startups if founders and key engineers are effectively tethered to the mainland.