China’s New Security Review Measures for Foreign Investment is formally Implemented

January 20, 2021

China's newly published "Measures for the Security Review of Foreign Investments" (the "NSR Measures") came into effect on January 18, 2021. The NSR Measures is a refinement of the provisions for security review of foreign investment in the Foreign Investment Law of early 2020 and represents the latest development in China's effort in building a national security review framework for foreign investments.

Under Article 4 of the NSR Measures, notification must be made to the NSR Office for any contemplated foreign investments into certain sensitive areas. These notifiable investments are divided into two categories:

  1. National Defence
  2. Important Fields

According to the NSR Measures, once a foreign investor notified the NSR Office, the procedures includes:

  1. Preliminary Review
  2. General Review
  3. Special Review

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Topics: China, National Security Review, Foreign Investment

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