China has implemented new legal measures to enhance control over the movement of its citizens and certain foreigners, including members of the Chinese diaspora, with the goal of reducing the risk of brain drain in key strategic sectors. These regulations, introduced by the State Council on July 31, 2026, will take effect on September 15. The move is part of a broader strategy to manage the flow of people and knowledge in a globalized economy, where mobility can be both an asset and a vulnerability. The new rules include stricter border controls through deterrence, verification, and formal restrictions. Authorities have broad discretion in interpreting the regulations, as the legal framework allows immigration services to advise Chinese citizens against traveling to countries labeled "at risk." The criteria for identifying such countries are not clearly defined, raising concerns about potential political influence. The Ministry of Foreign Affairs has issued two levels of travel alerts: "normal caution" and "caution, travel not recommended at this time," with the latter including countries like Afghanistan, Iran, and Palau. Tensions with Palau have risen due to its recognition of Taiwan, a move that China opposes. Limiting movement can be an effective way to control knowledge and technology, rather than trying to block it directly. China aims to become the world's leading technological power, focusing on strategic areas like artificial intelligence, defense, and renewable energy. However, this ambition also makes the country vulnerable to brain drain, where skilled professionals leave for better opportunities abroad. Recent tensions with the AI agent Manus, developed by the Chinese company Butterfly Effect, highlight this concern. The company moved to Singapore to access international markets, an approach that drew criticism in China. Although Manus was acquired by Meta in 2025, the deal was blocked in 2026, and two founders were barred from leaving China until August. Economist Cui Fan has linked such cases to broader structural issues in China’s economy, noting that Chinese companies often rely on international markets due to weak domestic demand. However, the strategic importance of technological competition means that China seeks to maintain control over its companies and their leaders. In the broader context of the systemic rivalry between China and the United States, China aims to position itself as a credible alternative to a perceived declining Western world. This narrative, often referred to as "the East is rising and the West is declining," is used to justify policies toward Taiwan, as well as actions in regions like Tibet, Hong Kong, and Xinjiang. Any deviation from the official narrative of national identity and the role of the Communist Party of China is viewed as a threat. As a result, pressure is increasing on the Chinese diaspora, with restrictions on their movement and travel. In 2025, Mao Chenyue, a Chinese-born banker naturalized in the U.S., was prevented from leaving China for several months, allegedly due to her involvement in a criminal case. She was eventually allowed to leave after a U.S.-China framework deal related to TikTok was finalized.