CHINA: Stricter review process for China foreign investors

Wednesday August 31 2011

The Ministry of Commerce have introduced new regulations on foreign investment in China. The new regulations (currently only available in the Chinese language) set out that foreign investment in China will be subject to much stricter review processes, especially mergers and acquisitions, loans, and variable interest entities. Manqing He, the Director of the Ministry of Commerces Multinational Firms Research Department set out that China foreign investment would be subject to a three step review process; industry regulations for China foreign investors, an anti-trust review, and a new security examination. The new regulations are effective from 1 September onwards.

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