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Measures for Security Review of Foreign Investments

Sophie & Denis LegalTips 2021-10-12

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The National Development and Reform Commission(NDRC)and the Ministry of Commerce (MOFCOM)released on 19 December 2020 the Measures for Security Review of Foreign Investments, to be implemented 30 days after the date of issuance.经国务院批准, 12月19日,发改委、商务部发布《外商投资安全审查办法》,将于公布之日起三十日后正式施行。
According to the Measures, foreign investment in the following scope should be reported to authority in advance:(1) Investment in areas related to national defense security, such as military industry and military support, as well as investment in in the areas surrounding military facilities and military-industrial facilities.(2) Investment in important agricultural products, important energy and resources, and major equipment manufacturing, critical infrastructure, important transportation services, important cultural products and services, Important information technology and Internet products and services, critical financial services, key technologies, and other important areas which are related to national security and the foreign investor will gain actual control over the invested enterprise.The above-mentioned actual control refers to the following situations:(1) Foreign investors hold more than 50% of the equity in the company;(2) Foreign investors hold less than 50% of the equity in the company, but they shall enjoy the voting power that can have a significant impact on the resolution of the board of directors, the shareholders' meeting or the general meeting of shareholders.(3) Other situations where the foreign investors can have a significant effect on business decisions, personnel, financial and technology issues etc. of the company.根据该办法,下列范围内的外商投资应当在实施投资前主动申报:(一)投资军工、军工配套等关系国防安全的领域,以及在军事设施和军工设施周边地域投资;(二)投资关系国家安全的重要农产品、重要能源和资源、重大装备制造、重要基础设施、重要运输服务、重要文化产品与服务、重要信息技术和互联网产品与服务、重要金融服务、关键技术以及其他重要领域,并取得所投资企业的实际控制权。前文所述实际控制权,包括下列情形:(一)外国投资者持有企业50%以上股权;(二)外国投资者持有企业股权不足50%,但其所享有的表决权能够对董事会、股东会或者股东大会的决议产生重大影响;(三)其他导致外国投资者能够对企业的经营决策、人事、财务、技术等产生重大影响的情形。
The Measures have 23 articles in total, regarding the type of foreign investments to be subject to a security review, the review institutions, scope and procedures, as well as how to deal with unlawful investment activities. The regulation aims to enhance the accuracy and transparency of security reviews, reduce the impact on foreign investment activities and protect foreign investors' legitimate interests.《安审办法》共23条,规定了适用审查的外商投资类型、审查机构、审查范围、审查程序、审查决定监督执行和违规处理等,进一步提高了审查工作的规范性、精准性和透明度,尽可能减少对外商投资活动的影响,保护外商投资积极性和合法权益。
According to the regulation, China will establish a working mechanism to review the security of foreign investments, which will be spearheaded by the NDRC and the MOFCOM.根据《安审办法》,国家建立外商投资安全审查工作机制,工作机制办公室设在发改委,由发改委、商务部牵头,承担外商投资安全审查的日常工作。
For more information, please visit the website of the Ministry of Commerce详细信息请登录商务部网站


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