China -  Chinese law firm

What are the effects of PRC Mergers and Acquisitions that are not affiliated with domestic investors?

For PRC M&A by foreign investors that are not affiliated with domestic investors, the biggest change under the new rules is the requirement of an additional approval by MOFCOM of transactions affecting an ‘Important Industry’, ‘National Economic Security’, a ‘well-known trademark’, or a ‘Chinese traditional brand’. This requirement clearly reflects recent political trends. The practical impact of this requirement is not yet clear, and is unlikely to become clear until a consensus is reached on how to balance China’s public opinion, competitive considerations and WTO-related market-opening undertakings.

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