February 23, 2011
China Unveils Its National Security Review Process of Foreign Investments
Here is news from this Wilson Sonsini memo: On February 3rd, the General Office of the State Council of China promulgated the Circular on Formalizing Security Review System of Mergers and Acquisitions of Domestic Enterprises by Foreign Investors (Circular No. 6), which clarifies the mechanisms and procedures for China’s national security review of foreign investments. In this memo, we discuss the scope of and process for China’s national security review as described in Circular No. 6 and the implications for certain foreign investments and cross-border transactions in China.