China Issues Rules for National Security-Related FDI Screening
China issued new rules for conducting national security reviews on foreign investment, following a trend of increased investment screening mechanisms around the world, including by the U.S. (see 2001140060) and the European Union (see 2010090016). The measures, which will take…
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effect next month, draw on other international investment screening mechanisms and are meant to “actively promote and protect foreign investment, China said Dec. 19, according to an unofficial translation. The rules establish a working body to review foreign investments based on national security concerns related to various Chinese sectors, including the military and the energy and agriculture industries.