New rule eyes national security
A NEW regulation issued by China's Ministry of Commerce yesterday states that the government will review mergers and acquisitions of domestic companies by foreign investors for national security purposes.
If any M&As involving foreign investors are determined to be a threat to national security, those deals should be terminated, the regulation states.
In addition, any past M&As of domestic companies by foreign investors that are found to have threatened national security will be terminated. As an alternative, the ministry may "take relevant measures such as equity and asset transfers or other methods to eliminate their (M&As) influence on national security," according to the regulation, which will take effect from next Thursday.
According to a circular concerning the review system, which was issued in February by the State Council, China's Cabinet, the review process will involve foreign M&As of domestic military-industrial enterprises and supporting firms, companies near "major and sensitive military facilities" and other M&As that are deemed to be relevant to national security.
If any M&As involving foreign investors are determined to be a threat to national security, those deals should be terminated, the regulation states.
In addition, any past M&As of domestic companies by foreign investors that are found to have threatened national security will be terminated. As an alternative, the ministry may "take relevant measures such as equity and asset transfers or other methods to eliminate their (M&As) influence on national security," according to the regulation, which will take effect from next Thursday.
According to a circular concerning the review system, which was issued in February by the State Council, China's Cabinet, the review process will involve foreign M&As of domestic military-industrial enterprises and supporting firms, companies near "major and sensitive military facilities" and other M&As that are deemed to be relevant to national security.
- About Us
- |
- Terms of Use
- |
-
RSS
- |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔$粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.