From Bloomberg ......China Says Panel Will Begin Scrutinizing Acquisitions by Foreign Companies
By Eva Woo -Feb 12, 2011 7:34 AM CT
China will set up a ministerialpanel to review planned takeovers of local companies by foreigninvestors for national-security concerns.
The inter-ministry group will be led by the NationalDevelopment and Reform Commission and the Ministry of Commerceand overseen by the State Council, according to a circularpublished today on the council’s website.
The panel will scrutinize acquisitions involving militaryindustrial companies and others relating to national defense,the circular shows. It also will look at takeovers involvingleading producers of agricultural goods, energy and naturalresources, as well as companies in some parts of theinfrastructure and transportation-services industries.
“Now foreign-funded M&A in China would be subject toreview by a state-level investment-review authority and can beblocked on the ground of endangering national security, whichmay not be received favorably by international investors,” saidHubert Tse, a Shanghai-based partner at law firm Boss & Young.
So, did we get that Chinese trading company, or not?!