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China Matters: China Establishes its Security Review Mechanisms for Inbound M&A Transactions

June 10, 2011

BY DAVID LIVDAHL & JENNY SHENG

On February 3, 2011, the PRC State Council (the State Council) promulgated the long awaited Circular on the Establishment of Security Review Mechanisms for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors ( ) (the State Council SR Circular), which took effect on March 5, 2011. As a follow up to the State Council SR Circular, the Ministry of Commerce (MOFCOM) issued the Interim Provisions on Issues Related to the Implementation of the Security Review Mechanisms for Mergers and Acquisitions of Domestic Enterprises by Foreign Investors ( ) (the Interim SR Rules) on March 4, 2011.

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