China to review scopes of foreign investments subject
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A general view shows the skyline of the central business district in Beijing on December 17, 2018. (Photo: AFP)

China's National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOC) jointly released rules on foreign investment security review to safeguard national security while spurring foreign investment.

The rules specified provisions concerning the security review mechanism on foreign investment, including the types of investments subject to review, review scopes and procedures.

According to the rules, China will review scopes of foreign investments subjects.

The country will conduct security reviews on foreign investments that affect or may affect national security in the following range: investment in the military industry and military industry supports that related to national defense security, as well as investment in military facilities and surrounding areas; investment in important industries that are related to national security, including agricultural products, important energy and resources, and major equipment manufacturing, important infrastructure, important transportation services, important cultural products and services, important information technology and internet products and services, important financial services, key technologies, and other important fields, and they must obtain actual control of the invested enterprises.

Approved by the State Council, the new rules aim to effectively forestall and resolve national security risks while promoting and protecting foreign investment to support the country's higher-level opening-up and facilitate the new development paradigm.

Compiled by Yang Jiaqi