Foreign investment in China FTZs to be subject to national security check

BEIJING – China’s State Council has released a circular on “trial procedures for a national security review of foreign investment in all free trade zones in Shanghai, Tianjin, and the provinces of Guangdong and Fujian”. The circular clarifies standards for conducting security reviews of foreign investment that may affect national security or involve sensitive investors, acquisition targets, industries and technology as well as other areas.

Investment by foreigners in military-related fields, or in key agricultural products, energy, infrastructure, transportation, culture, information technology and equipment manufacturing that concern national security will be reviewed, the circular says.

“The review will evaluate the influence of foreign investment on national security, economic stability, social order, morality, Internet safety and the development of key technology concerning State security. The evaluation will be conducted by a joint council, in which the National Development and Reform Commission and the Ministry of Commerce will work with relevant departments to work on different cases.”  www.webershandwick.cn (ATI).