General Review
Special Review
Within 60 working days of decision to initiate Special Review, it may take longer under special circumstances (no time limit)
The Working Group may make the following decisions:
Foreign investment is approved if the proposed investment does not impact national security;
Foreign investment is prohibited if the proposed investment impacts national security; or
Foreign investment is allowed subject to additional conditions that can eliminate the impact of the proposed investment on national security. Foreign investors will be required to accept the additional conditions in an undertaking in writing.
Sanctions
Parties that fail to declare investment that is within the scope and implement an investment, or fail to comply with additional conditions imposed on a reviewed and approved foreign investment, may be ordered to take actions to correct non-compliance within a prescribed time limit, or to unwind the investment, such disposing of equity or ass
Tuesday, December 29, 2020
On 19 December 2020, the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) have jointly issued the Measures for the Security Review of Foreign Investment (Measures), with effect from 18 January 2021. The Measures provide clarity on Article 35 of the Foreign Investment Law and Article 40 of its Implementing Regulations which have been in force since 1 January 2020, among others.
The Measures are nationwide. They consists of 23 articles, mainly specifying the following content: the agency responsible for foreign investment security review; the scope of foreign investment security review; the declaration mechanism for foreign investment security review; the procedures and time limit for foreign investment security review; the implementation of the decision on foreign investment security review; and punishments on violations.