China’s State Council said that it would create an investment review board to vet inbound mergers and acquisitions for national security threats, Reuters reported. The board would target specific sectors, particularly agriculture, energy, "important equipment manufacturers," infrastructure, military, transport and technology. Members of the new board will be drawn from the National Development and Reform Commission, Ministry of Commerce and other agencies. The statement also called on "related departments" to "enhance the sense of responsibility to guard state and commercial secrets." Chinese authorities have rejected several proposed foreign takeovers in recent years, such as a US$2.4 billion bid by Coca-Cola (KO.NYSE) for Chinese firm Huiyuan Juice (1886.HK) in 2009 and Carlyle’s US$375 million bid for construction equipment maker Xugong (now XCMG Construction Machines, 000425.SZ) in 2008. However, none has yet been blocked on explicitly national security grounds.
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