Chinese Government Issues National Security Laws on Foreign Investment

The Chinese government published on Monday morning new laws for reviewing foreign investment on national security grounds, potentially broad measures that it insisted didn’t amount to protectionism.

The Chinese government published on Monday morning new laws for reviewing foreign investment on national security grounds, potentially broad measures that it insisted didn’t amount to protectionism.

According to a Financial Times report, the review system announced by China’s National Development and Reform Commission covers foreign investments in military sectors and even the acquisition of controlling stakes in such sectors as energy, agriculture, financial services natural resources and internet technology.

“Only by tightening the fence against security risks can China lay the solid foundations for a new round of opening up that is broader, wider and deeper,” the commission said.

It also pointed out this decision was in line with international practice and would help balance the economic benefits of further opening with the need to ensure national security.

The announcement came as US President Donald Trump ratcheted up tensions with Beijing in his final weeks in office, adding dozens of Chinese companies to a trade blacklist on Friday.


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