August 30, 2006
China Gets Tough on Foreign Investment
China has adopted a serious of measures to discourage foreign direct investment in China. China's securities regulated has a new takeover code, for example, that stops acquisitions that "harm national security or the public interest." The Chinese Ministry of Commerce has also declared that it will stop foreign acquisitions that "affect economic security" or involve "key" domestic industries. Ironically, China's chief economic planning agency is considering further restrictions, patterned after Congressional proposals to expand the power of CFIUS (Committee for Foreign Investment in the United States) to block foreign investment in the United States.
TrackBack URL for this entry:
Listed below are links to weblogs that reference China Gets Tough on Foreign Investment:
It is not clear that there will be any toughening. Is this just a codification of a previous reality? The real question is how will the new laws be interpreted and enforced. My sense is that this is being done as a sop to a rising nationalist fervor and unless that fervor grows more, these changes will have little to no real impact.
Posted by: China Law Blog | Sep 5, 2006 10:38:37 AM