China unveils security review on foreign investment for better opening-up
Source: Global Times Published: 2020/12/19 19:29:21 Last Updated: 2020/12/19 19:49:50
China's National Development and Reform Commission (NDRC), the country's top planner, and the Ministry Commerce announced on Saturday to issue new measures on the security review of foreign investment affecting national security, which will come into effect from January 18 2021.
The release of the new measures is aimed at effectively preventing and resolving national security risks while actively promoting and protecting foreign investment, analysts said.
Under the new security review measures, the scopes of foreign investment that will be subject to security review include military industry and other national defense and security fields; locations near military facilities and military industrial facilities; major agricultural products, energy and some other fields that have importance in national security.
In an explanation document also published on Saturday, the NDRC stressed that China's willingness to expand its opening-up will not change and its resolve to continuously improve its business environment will not swerve.
The introduction of the security review measures for foreign investment shouldn't be seen as protectionism or moving backwards on opening-up, the NDRC said. Its main purpose is to meet the need for a higher level of opening-up while preventing national security risks.
Globally speaking, it is a common practice for countries to conduct security reviews and screen foreign investment that affects or may affect national security. For instance, the US issued the Foreign Investment Risk Review Modernization Act, the EU released the Foreign Direct Investment Regulation and Australia issued the Foreign Investment Reform.
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