Check if you are ready for China's New National Security Review Rules in 2021


The national security review of foreign investment is not a novel topic throughout the world. Nor is it alien to China. China has implemented the national security review regime for years, but it will enter a new era by unveiling a new regulation recently. On December 19, 2020, the National Development and Reform Commission (“NDRC”) and the Ministry of Commerce (“MOFCOM”) jointly issued the Measures on Foreign Investment Security Review (hereinafter as the “Measures”).

The person in charge of the Foreign Investment Security Review Mechanism Office explained that the introduction of the Measures aims to adapt to the need of deepening opening-up, and at the same time to effectively prevent and mitigate national security risks. Therefore, openness and national security are two axes of the Measures.

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