The Ministry of Commerce (MOC) announced on Monday its right to cease the foreign mergers and acquisitions (M&As) that have threatened or might significantly threaten national security. It can also adopt other measures such as transferring shares or assets to eliminate the threats, the China Securities Journal reported Tuesday.
According to the interim provisions released Monday, foreign investors should submit applications to the MOC if they want to take over domestic enterprises on the safety review list, the report said.
According to the notice released by the State Council last month, M&As in some industries will need safety reviews. Those include the military and supporting enterprises, enterprises located close to key military facilities and other enterprises relating to national security. If foreign investors want to take over enterprises producing certain agricultural products, energy and resources, infrastructure, transportation, key technologies and equipment manufacturing, they should also be reviewed for safety.
The interim provisions became effective March 5 and will be valid until Aug 31. The public can submit their opinions and suggestions to the MOC between March 5 and April 10, the report said.
Weekly review
According to the interim provisions released Monday, foreign investors should submit applications to the MOC if they want to take over domestic enterprises on the safety review list, the report said.
According to the notice released by the State Council last month, M&As in some industries will need safety reviews. Those include the military and supporting enterprises, enterprises located close to key military facilities and other enterprises relating to national security. If foreign investors want to take over enterprises producing certain agricultural products, energy and resources, infrastructure, transportation, key technologies and equipment manufacturing, they should also be reviewed for safety.
The interim provisions became effective March 5 and will be valid until Aug 31. The public can submit their opinions and suggestions to the MOC between March 5 and April 10, the report said.
Weekly review
