BUSINESS Foreign investment security review rules won't burden normal foreign investors

BUSINESS

Foreign investment security review rules won't burden normal foreign investors

Xinhua

08:36, March 19, 2021

Rules for foreign investment security reviews will not add unnecessary burdens to normal foreign investors and enterprises, but are conducive to the development of foreign-funded businesses in China in the long term, according to the Ministry of Commerce (MOC) on Thursday.

Photo taken on Jan. 7, 2020 shows China-produced sedans at Tesla's gigafactory in Shanghai, east China. (Xinhua/Ding Ting)

The rules fine-tune China's foreign investment security review system in accordance with the requirements of the foreign investment law and relevant regulations, MOC spokesperson Gao Feng told a regular press conference.

Gao said that the rules are a necessary guarantee for the stable and healthy development of China's economy and further opening-up to the outside world.

Under the rules, foreign investment in the military industry and relevant sectors pertaining to national security, as well as in surrounding areas of military infrastructure, should be reviewed, Gao said.

Foreign investment in nine sectors concerning national security, including vital agricultural products, energy and resources, should also be reviewed when foreign investors have control over the enterprises in which they invest, the spokesperson added.

Conducting security reviews on foreign investments is a regular international practice, Gao said.

Chinese authorities released rules for foreign investment security reviews at the end of last year. The rules came into effect in January.

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