Tap "LegalTips"

to follow us

You may also feel interested in:Antitrust Guidelines in Platform Economy Released  for Comment
Regional Comprehensive Economic Partnership Agreement
Doing Business in China--All You Need Is Here
The National Development and Reform CommissionNDRCand the Ministry of Commerce MOFCOMreleased on 19 December 2020 the Measures for Security Review of Foreign Investments, to be implemented 30 days after the date of issuance. 1219
According to the Measures, foreign investment in the following scope should be reported to authority in advance:(1) Investment in areas related to national defense security, such as military industry and military support, as well as investment in in the areas surrounding military facilities and military-industrial facilities.(2) Investment in important agricultural products, important energy and resources, and major equipment manufacturing, critical infrastructure, important transportation services, important cultural products and services, Important information technology and Internet products and services, critical financial services, key technologies, and other important areas which are related to national security and the foreign investor will gain actual control over the invested enterprise.The above-mentioned actual control refers to the following situations:(1) Foreign investors hold more than 50% of the equity in the company;(2) Foreign investors hold less than 50% of the equity in the company, but they shall enjoy the voting power that can have a significant impact on the resolution of the board of directors, the shareholders' meeting or the general meeting of shareholders.(3) Other situations where the foreign investors can have a significant effect on business decisions, personnel, financial and technology issues etc. of the company.50%50%
The Measures have 23 articles in total, regarding the type of foreign investments to be subject to a security review, the review institutions, scope and procedures, as well as how to deal with unlawful investment activities. The regulation aims to enhance the accuracy and transparency of security reviews, reduce the impact on foreign investment activities and protect foreign investors' legitimate interests.23
According to the regulation, China will establish a working mechanism to review the security of foreign investments, which will be spearheaded by the NDRC and the MOFCOM.
For more information, please visit the website of the Ministry of Commerce


Tap "Read More" to visit our website

\n

Measures for Security Review of Foreign Investments

Tap "LegalTips"

to follow us

You may also feel interested in:Antitrust Guidelines in Platform Economy Released  for Comment
Regional Comprehensive Economic Partnership Agreement
Doing Business in China--All You Need Is Here
The National Development and Reform CommissionNDRCand the Ministry of Commerce MOFCOMreleased on 19 December 2020 the Measures for Security Review of Foreign Investments, to be implemented 30 days after the date of issuance. 1219
According to the Measures, foreign investment in the following scope should be reported to authority in advance:(1) Investment in areas related to national defense security, such as military industry and military support, as well as investment in in the areas surrounding military facilities and military-industrial facilities.(2) Investment in important agricultural products, important energy and resources, and major equipment manufacturing, critical infrastructure, important transportation services, important cultural products and services, Important information technology and Internet products and services, critical financial services, key technologies, and other important areas which are related to national security and the foreign investor will gain actual control over the invested enterprise.The above-mentioned actual control refers to the following situations:(1) Foreign investors hold more than 50% of the equity in the company;(2) Foreign investors hold less than 50% of the equity in the company, but they shall enjoy the voting power that can have a significant impact on the resolution of the board of directors, the shareholders' meeting or the general meeting of shareholders.(3) Other situations where the foreign investors can have a significant effect on business decisions, personnel, financial and technology issues etc. of the company.50%50%
The Measures have 23 articles in total, regarding the type of foreign investments to be subject to a security review, the review institutions, scope and procedures, as well as how to deal with unlawful investment activities. The regulation aims to enhance the accuracy and transparency of security reviews, reduce the impact on foreign investment activities and protect foreign investors' legitimate interests.23
According to the regulation, China will establish a working mechanism to review the security of foreign investments, which will be spearheaded by the NDRC and the MOFCOM.
For more information, please visit the website of the Ministry of Commerce


Tap "Read More" to visit our website

\n

No comments:

Post a Comment