The China Office of the State Council recently issued a circular to launch a state-level investment review body to check that merger and acquisition deals struck by non-Chinese firms in China do not endanger “national security.” On 4 March 2011, China’s Ministry of Commerce issued the temporary procedural rules for the security review as provided in #6 Circular.

On 12 February 2011, the Office of the State Council issued a circular, No. 6 Circular of the General Office of the State Council on the Establishment of Security Review System Regarding Merger and Acquisition of Domestic Enterprises by Foreign Investors (#6 Circular), to launch a state-level investment review body to check that merger and acquisition deals struck by non-Chinese firms in China do not endanger “national security.” (View China to Scrutinize M&A by National Security for more information.)

On 4 March 2011, China’s Ministry of Commerce (MOFCOM) issued the temporary procedural rules for the security review as provided in #6 Circular. These procedural rules are described below.