On 1 January 2020, China’s Foreign Investment Law (FIL) and the Implementation Regulations of the Foreign Investment Law came into effect (see our previous post).
Under both the FIL and the implementation regulations the State is responsible for establishing a security review system for foreign investments which will require a review of those that could affect national security. This elevates the national security review (NSR) regime to the national law level and will expand the scope of NSR to cover all foreign investments in China from the current regime which applies to foreign acquisitions. The detailed operating rules on the NSR regime under the FIL have yet to be released.
Please click here to view our detailed briefing in which we highlight the key requirements under the current NSR regime and explore the recent developments.