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China Issues Measures for Security Review of Foreign Investment - China Legal News

Sat, 16 Jan 2021
Categories: China Legal Trends

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China’s National Development and Reform Commission (NDRC) and Ministry of Commerce jointly promulgated the Measures for the Security Review of Foreign Investment in December 2020, which will come into force from 18 Jan. 2021.

With the approval of the State Council, the National Development and Reform Commission (NDRC) and the Ministry of Commerce jointly promulgated the Measures for the Security Review of Foreign Investment (外商投资安全审查办法) on 19 Dec. 2020, which will come into force from 18 Jan. 2021.

The Measures consists of 23 articles, stipulating the types of foreign investment subject to review, the review body, the scope of review, review procedures, supervision on the implementation of review decisions and handling of violations. These provisions are intended to further improve the standardization, accuracy and transparency of the review, minimize the impact on foreign investment activities, and protect the investment enthusiasm as well as the legitimate rights and interests of foreign investors. 

According to the Measures, China shall establish a working mechanism for the security review of foreign investment. The Office of Working Mechanism will be housed in the NDRC and led by the NDRC and the Ministry of Commerce to undertake the routine work of the security review of foreign investment.

Contributors: Yanru Chen 陈彦茹

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