A new rule issued by the General Office of the State Council of China on February 3 2011 will impact mergers and acquisitions (M&As) undertaken by foreign parties of Chinese targets in certain sensitive industry sectors.
Protection measures
The State Council recently promulgated a new initiative to establish a security review system on domestic M&A activities conducted by foreign parties. This new process officialises an attempt to safeguard key Chinese companies, but will add time and cost burdens to select potential overseas investors
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