Establishment of Security Review System for M&A of Domestic Enterprises by Foreign Investors
02-03-2011

On February 3, 2011, the General Office of the State Council issued the Notice on the Establishment of the Security Review System for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors ("Notice").

The new security review system for mergers and acquisitions that was established by this Notice applies to: Foreign investors'  mergers and acquisitions of domestic military industrial enterprises and supportive military industrial enterprises, enterprises surrounding major and sensitive military facilities, and other entities relating to the national defense security; foreign investors'  mergers and acquisitions of domestic enterprises relating to important agricultural products, important energies and resources, important infrastructural facilities, important transportation services, key technologies, manufacturing of major equipment, etc., which relate to the national security, and whose actual controlling power may be obtained by foreign investors.
(March 2011)