MOFCOM releases implementing rules on national security review - Press Room

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Hogan Lovells Publications

"MOFCOM releases implementing rules on national security review." Hogan Lovells, 14 March 2011

Philip Cheng, Adrian Emch, Andrew McGinty, Jun Wei, Roy G. Zou, Xi Liao, Thomas Man

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In an anticipated move, on 4 March 2011, China's Ministry of Commerce ("MOFCOM") promulgated the Ministry of Commerce Interim Provisions on Implementing the National Security Review System for Mergers and Acquisitions of Enterprises within China involving Foreign Investors ("Interim Provisions"). The Interim Provisions clarify certain procedural issues arising from the national security review system established about one month ago. The Interim Provisions will essentially play a stop-gap role – somewhat unusually they became effective as of 5 March and will expire on 31 August of this year. The public are invited to submit comments on the Interim Provisions up until 10 April. MOFCOM will also assess the comments and recommendations in the light of the implementation of the Interim Provisions so as to improve the system at a later stage.