Legislative Updates News
- Foreign takeoversface security checks
Date: 26-Jun-2007 Sources: (Shenzhen Daily)
CHINA has written mandatory national security checks on foreign acquisition of domestic firms into a draft law, the first time the mechanism has been included in legislation, State media said yesterday.
'Foreign mergers and acquisitions of domestic companies or foreign capital invested in domestic companies in other forms should be examined ... if the cases are related to national security,'said the draft anti-monopoly law, according to the China Daily.
It is the first time that such a national security checking mechanism has been written into a draft law, which was submitted Sunday to top legislators for a second reading, the newspaper said.
Late last year, the government issued a joint announcement requiring foreign investors to apply for approval from the Ministry of Commerce if their purchases of domestic players could affect national economic security.
They have also to obtain official approval if their acquisitions are in key sectors or will lead to the transfer of operating rights of famous domestic brands.
In December, the State Council, or Cabinet, released a list of strategic sectors in which the State will retain control.
The list includes military-related manufacturing, power production and grids, petroleum, gas and petrochemicals, telecom manufacturing, coal, civil aviation and shipping.
Sponsor Results:
