ANNOUNCEMENT 03 Feb 2011

February 12th, 2011 - In February 2011, the government of China announced changed rules for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

PRC Central People's Government, February 12th, 2011. (国办发〔2011〕6号 国务院办公厅关于建立外国投资者并购境内企业安全审查制度的通知)
http://www.gov.cn/zwgk/2011-02/12/content_1802467.htm

Inception date: 03 Feb 2011 | Removal date: open ended

FDI: Entry and ownership rule

On 3 February 2011, the General Office of the State Council issued the Circular the General Office of the State Council on the Establishment of Security Review System Regarding Merger and Acquisition of Domestic Enterprises by Foreign Investors (Guobanfa '2011' No.6) for the purpose of further regulating foreign investment through mergers and acquisitions.
 
According to the Circular, any merger or acquisition by foreign investors in the business areas listed below shall be reviewed by the Ministry of Commerce.
 
The business areas subject to this review are: 

  • domestic military-industrial and military related enterprises,
  • operators sensitive military facilities and other units concerning national security;
  • major agricultural producers, energy and resources extractors,
  • major infrastructure and transportation services,
  • key technologies and major equipment manufacturing relating to national security,

 In 2020, the review framework laid out in the 2011 Circular was expanded to effectively cover all inbound FDI - see related act for more information.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A