Update on China's National Security Review Regime: Interim Procedural Guidance Issued by MOFCOM

On 4 March 2011, the PRC Ministry of Commerce ("MOFCOM") issued the Provisional Regulations of the Ministry of Commerce for Matters Relating to the Implementation of the Security Review Mechanism for the Acquisition of Domestic Enterprises by Foreign Investors ("MOFCOM Circular 8"). Under the Notice of the General Office of the State Council on the Establishment of a Security Review System for the Acquisition of Domestic Enterprises by Foreign Investors (Guo Ban Fa [2011] No. 6) ("Circular 6"), MOFCOM has been entrusted to liaise with the joint committee in charge of national security review. While Circular 6 sets out the broad principles, MOFCOM Circular 8 provides guidance on the procedural aspects of national security review applications.MOFCOM Circular 8 is an interim set of procedures which takes effect on 5 March 2011 and is valid till 31 August 2011. This alert outlines MOFCOM Circular 8 and its new procedures.