Foreigners seeking “strategic” stakes in listed Chinese companies could face broader national security reviews under rules drafted by China’s commerce ministry, a sign Beijing is preparing to hit back at western efforts to curb Chinese acquisitions of sensitive technologies.
The proposed amendments to existing investment rules, published yesterday, expand the range of foreign investments covered by China’s formal national security review process.
They follow recent efforts by the US, UK and Germany to strengthen merger review systems to make it harder for foreign groups to take over companies deemed to have national security assets — moves frequently aimed explicitly at Chinese acquirers. Beijing has signalled a willingness to use such reviews as a tool in its trade war with the US, scuppering a $44bn bid by chipmaker Qualcomm for a Dutch rival last week.