Businessmen may no longer bet on the sex and gambling industry after China laid down new rules against “irrational” overseas investments.

From real estate to hotels and entertainment industry, the Chinese government is starting to become more discerning with its overseas investments ahead of Communist Party leadership transition later this year.

Analysts say that China’s new overseas investment rules were laid out in order to quell the possible spark risks and endanger national interests and security.

The Chinese government has categorized overseas business ventures into three – banned, restricted, and encouraged.