It’s been slightly over a month since the enactment of a national security review (NSR) process for foreign acquisitions of domestic businesses. Thus far, it is not clear how many (if any at all) foreign-local deals have undergone the NSR process, Pursuant to the rules and regulations1 which govern the NSR process, there is no obligation on the part of the Chinese government to publish any determinations (whether deals are approved or not) in relation to deals which undergo the NSR process.Continue Reading Local commerce administrative agencies and the national security review process
By Susan Ning, Yin Ranran, Huang Jing
There have been concerns about Chinese government’s foreign investment policy ever since the State Council announced the formal establishment of the national security review ("NSR") regime in China. At a press conference of the Fourth Session of the 11th National People’s Congress held on March 7, 2011, China’s Minister of Commerce Chen Deming reiterated that China’s "opening-up" policy will remain unchanged. According to Chen, whereas China is in the process of further opening up to the world, introducing the NSR regime ensures that national security concerns will be addressed in a transparent manner and it is in line with international practice.
The NSR regime is not particular to China. The United States first instituted the NSR process in the 1980s. Other jurisdictions, such as Australia, Germany, Canada, also have similar processes (see our article entitled More on China’s national security review regime – the American regime vs the Chinese regime). Through our research, we find that during the past few years, the following contemplated outbound investments by Chinese companies underwent the NSR process:Continue Reading List of Outbound Investments by Chinese Companies Scrutinized for National Security Concerns
On 3 February 2011, China’s State Council released a notice which governs a national security review process for foreign acquisitions of domestic companies1. This national security review process will be implemented on 5 March 2011.
Since the release of the notice, there has been a flurry of articles and commentaries in both the legal and business media circuit. Foreign businesses who wish to invest in China are concerned that this is potentially another tedious clearance process (on top of the corporate, regulatory and antitrust clearance processes) to pass before they are free to close their proposed transactions.Continue Reading More on China’s national security review regime – the American regime vs the Chinese regime