Defining 'National Security' In Chinese Mergers

Law360, New York (March 22, 2011, 1:02 PM EDT) -- China’s regulations formalizing “national security” review of foreign acquisitions of Chinese enterprises issued just last month[1] have been eagerly awaited in the hopes that they would provide guidance and elaboration of standards to be applied in an area which — as it has developed in China — is at once seemingly familiar and unfamiliar to Western practitioners.

The area is familiar in that many jurisdictions, the U.S. included, have some form of “national security” as part of their safeguards applicable to foreign investment. It is unfamiliar...
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