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National Security Review for Foreign Investment in China
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On December 19th, 2020, The National Development and Reform Commission of China (“NDRC”) and the Ministry of Commerce (“MOFCOM”) jointly issued the “Measures for the Security of Review of Foreign Investment” (Hereinafter referred to as “the Measures”), which will take effect from January 18th, 2021.
The purpose of the Measures is to review foreign investments & their possible impact on the national security of the People’s Republic of China. Since the promulgation of the New Foreign Investment Law at the beginning of 2020, which clearly stipulated the establishment of such a security review system, it is of no surprise to see the promulgation of the Measures in 2020. We will therefore highlight some of the main aspects of note from the Measures for your reference.
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