• China Establishes National Security Review Procedures for Acquisitions of Domestic Enterprises and Assets by Foreign Investors
  • May 27, 2011
  • Law Firm: Cadwalader, Wickersham & Taft LLP - New York Office
  • As China continues its rapid pace of economic development, there is increasing interest among foreign investors to acquire local Chinese enterprises and assets. Control of local enterprises and assets by foreign investors may involve matters of national security for China. As a result, the Chinese government has issued a set of procedures designed to strengthen its review of acquisitions by foreign investors in sensitive sectors which may significantly increase the amount of time it takes for foreign investors to get a transaction approved by the Chinese government. If the Chinese government finds that a transaction has national security implications, the procedures grant it broad powers to amend the terms of the transaction or even cancel it.