The Chinese MOFCOM publishes final rules on the national security review of foreign investment in national companies

China has published new rules to implement the national security review that will be conducted as part of the review of mergers and acquisitions by foreign investors and involving Chinese companies. These rules provide for review and potential rejection of acquisitions of Chinese companies by foreign investors where such acquisitions could affect national security, economic stability, social order, or research and development capabilities relating to key technologies. As with many rules of this type in China and other jurisdictions, these leave great discretion in the hands of Chinese government agencies. Whether they will constitute another serious obstacle for foreign companies doing business in China will depend on how they are applied in practice. Background China's Anti-Monopoly

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Peter J. Wang, Sébastien J. Evrard, Yizhe Zhang, Bevin M.B. Newman, Giovanna M. Cinelli, Kenneth J. Nunnenkamp, The Chinese MOFCOM publishes final rules on the national security review of foreign investment in national companies, September 2011, e-Competitions Bulletin September 2011, Art. N° 50112

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