China’s 2018 ODI Rule Changes

Offshore Tax with HTJ.tax · Feb 23, 2026 · 3m

In March 2018, China introduced significant reforms to its Outbound Direct Investment (ODI) regime. These changes—implemented through Order No. 11—expanded regulatory oversight, tightened supervision of indirect investments, and clarified the treatment of sensitive sectors.In this episode, we break down what changed and why it matters.🔎 1️⃣ Expansion to Indirect Offshore StructuresPrior to 2018, ODI rules primarily focused on direct outbound investments by Chinese entities.The reform broadened the scope to include:• Investments made indirectly • Through controlled offshore entities • Owned by…