China releases rules on foreign investment secrity review

CNC
Added On December 20, 2020

Chinese authorities have released rules on foreign investment security review to safeguard national security while spurring foreign investment.

 
The rules, jointly released by the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOC), specified provisions concerning the security review mechanism on foreign investment.
 
Approved by the State Council, the 23-clause rules aim to effectively forestall and resolve national security risks while actively promoting and protecting foreign investment to support the country's higher-level opening-up and facilitate the new development paradigm.
 
The rules will take effect 30 days after the release.
 
 An office official stressed that releasing the security review rules is not a protectionist move or refusal to further open up. Instead, it accords with China's commitment to opening-up on all fronts and aims at strengthening the security mechanism for opening-up.
 
While encouraging and protecting foreign investment, the rules should prevent and dissolve national security risks and safeguard opening-up at a higher level.