Hong Kong (event, 'New');" target="_self">New York Times) – After a quarter-century of welcoming and even courting foreign investors, Chinese lawmakers are set to pass legislation tha would limit foreign acquisitions in China on national security grounds this week in the National People’s Congress.Western companies have welcomed many of the law’s provisions, including limits on monopolistic behavior by state-owned enterprises, but the final draft has an unexpected last-minute addition: t states that acquisitions by foreign companies “should go through national security checks. 癟here is certainly a desire by China to ensure the crown jewels are not pillaged by foreign invaders,onnie Carnabuci, a partner in the Hong Kong office of Freshfields Bruckhaus Deringer, a multinational law firm, said.
Expert comment
It is a part of the anti-monopoly law approved yesterday in the National People’s Cngress.
China has adopted a cautious evaluation and approval system targeting mergers and acquisitions by foreign investors for decades. It only clarifies and systemizes the procedure.
It’ also a common practice by many governments around the world to secure their own economy and national security.
The Ministry of Commerce publishes the guidelines every year stating clearly the industries where foreign capital is encouraged, allowed, discouraged and prevented to go and where not.