China’s New National Security Review Process for Foreign Acquisitions: Crossing the River by Feeling the Stones

more+
less-

China’s State Council recently released long-anticipated guidelines, entitled the Notice on the Establishment of the Security Review System for Foreign Mergers and Acquisitions of Domestic Enterprises (the Notice), for the establishment of a panel review process for acquisitions by foreign investors of domestic enterprises that have national security implications. The Notice is dated February 3, 2011, and will become effective on March 5, 2011 – 30 days after its promulgation.

The State Council has put in place a review system that follows to a significant degree the national security review procedure undertaken by the Committee on Foreign Investment in the United States (CFIUS). The announcement by the State Council of the security review system coincides with CFIUS’s recent high-profile ruling against an acquisition in the United States by Chinese telecommunications equipment manufacturer Huawei, although it is unlikely the events are connected.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Administrative Agency Updates, Finance & Banking Updates, International Trade Updates, Mergers & Acquisitions Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »