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China to Start M&A Security Review

18 February 2011 

On 3 February 2011, the General Office of China’s State Council issued the “Circular on Establishing Security Review System for Merger and Acquisition of Domestic Enterprises by Foreign Investors” which shall take effect as from 4 March 2011. According to the Circular, security review shall be conducted if foreign capital is to acquire or merge with a domestic enterprise that is:
- engaged in military or military supporting industry;
- located around key and sensitive military facility;
- relevant to national defense; or
- involved in important agricultural products, important energy and resources, important infrastructure, important transportation service, key technology, or important equipment manufacturing, which is relevant to national security and may possibly be controlled by foreign investors.


Any legal information contained in this newsletter is general in nature and laws and regulations are changing from time to time and compliance will always depend upon the particular circumstances. We have not attempted to give exhaustive descriptions of law or to give a legal opinion on specific legal issues. You should not rely on this newsletter as a legal advice for any particular purpose.



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