Outbound Investment Crackdown: China’s State Council issued new rules tightening control of overseas deals tied to Chinese investors, tech, data and national security, effective July 1, including authorization for exports of restricted goods/tech/data and a legal basis to unwind completed transactions—raising compliance risks for global investors in AI and sensitive sectors. US Export Controls Tighten: The US Commerce Department clarified it will enforce licensing for advanced AI chip exports to entities headquartered in China even if subsidiaries sit abroad, closing a loophole that may have let Chinese firms access Nvidia-class chips via overseas branches. Taiwan Flashpoint at Sea: China Coast Guard conducted “law enforcement” patrols east of Taiwan, citing Japan-Philippines maritime delimitation talks; Taiwan rejected Beijing’s claims as interference, as regional coast guard and military activity continues. Indo-Pacific Defense Momentum: South Korea and Japan discussed a possible military logistics-sharing pact while resuming search-and-rescue drills after years of disputes, signaling deeper cooperation despite historical friction. Governance Push for Fair Enforcement: Beijing’s year-long campaign against irregular business enforcement found over 66,000 problematic cases and pushed local authorities to scrap unnecessary items and remove unqualified personnel. Social Policy: UNICEF said China has made substantial progress improving accessibility for children with disabilities, while China also stepped up support for migrant and left-behind children ahead of International Children’s Day. Energy & Markets: China’s seaborne crude imports fell to the lowest in nearly a decade in May, framed as adaptation to Middle East supply shocks rather than policy altruism.