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World

China issues new rules to review foreign investment on national security grounds

  • China has drawn up new rules that will allow authorities to review foreign investment on national security grounds, the country’s state planning agency said on Saturday.
19 Dec 2020

SHANGHAI (Reuters) - China has drawn up new rules that will allow authorities to review foreign investment on national security grounds, the country’s state planning agency said on Saturday.

The new review system will cover foreign investments in military sectors as well as “important” investment in energy, natural resources, agriculture, internet technology and financial services, the National Development and Reform Commission (NDRC) said.

The NDRC said the review system was in line with international practice and would help balance the economic benefits of further opening with the need to ensure national security.