The Chinese NDRC and MOFCOM release a second version of the National Security Review Rules

On 19 December 2020, the National Development and Reform Commission (“NDRC”) and the Ministry of Commerce (“MOFCOM”) jointly released the “Measures for the Security Review of Foreign Investment (the “Measures”), which will become effective from 18 January 2021. The issuance of the Measures is a clear signal that the Chinese government is taking a more active approach in relation to national security review on foreign investments (“NSR”). In this article, we will briefly explain the background of the promulgation of the Measures, introduce the main contents from both substantive and procedural perspectives as well as discuss the potential impacts upon future foreign investments in China. Background for Promulgation of the Measures According to the NDRC’s spokesperson, the Measures were