Check if you are ready for China's New National Security Review Rules in 2021 (China)

January 13, 2021The national security review of foreign investment is not a novel topic throughout the world. Nor is it alien to China. China has implemented the national security review regime for years, but it will enter a new era by unveiling a new regulation recently.

On December 19, 2020, the National Development and Reform Commission (‘NDRC’) and the Ministry of Commerce (‘MOFCOM’) jointly issued the Measures on Foreign Investment Security Review (hereinafter as the ‘Measures’).The person in charge of the Foreign Investment Security Review Mechanism Office explained that the introduction of the Measures aims to adapt to the need of deepening opening-up, and at the same time to effectively prevent and mitigate national security risks. Therefore, openness and national security are two axes of the Measures.However, the document should be read in a broader context. This is against the backdrop of the close scrutiny paid by the US government to Chinese investment in recent years.

China has topped the list of nations of origin for foreign companies under the US CFIUS review since 2012.

Earlier this year, Trump administration has sought to unwind the TikTok deal (a video-sharing social media owned by a Beijing-based tech company ByteDance) and divest itself of US operations.Download the article[1]AttachmentsOriginal document[2]Permalink[3]DisclaimerDentons US LLP published this content on 13 January 2021 and is solely responsible for the information contained therein.

Distributed by Public, unedited and unaltered, on 13 January 2021 07:35:04 UTC


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