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China's New National Security Review Mechanism Born

  

  - National Defense


  

  This is interpreted as the effect of the Deal on the productivity of domestic products, the capacity of domestic service and the relevant equipment and facilities demanded in the defense.


  

  - National Economic Safety


  

  The effect on the stability of the economic performance should be considered. This can be regarded as the economic safety of China. The national economic safety was first mentioned by the MOFCOM as the factor in assessment of the M&A of the domestic enterprises by foreign investors in the Interim Provisions for Foreign Investors to Merge Domestic Enterprises (2003). We are not aware of any case that is refused by the MOFCOM due to the national economic concern. The Huiyuan and Coca-Cola case may be construed to some extent as being rejected for this concern, but the official press of the MOFCOM does not list this as the rejecting reason.


  

  - National Social Safety


  

  The impact on the basic order of social life is also one of the standards. There is no doubt that this will cover the impact of the Deal on the public interests, such as public order and moral, which will increase the uncertainty about how to define the national social safety. This factor also can be broadened as the political security. As the fact that the Communist Party is exhausting to keep the stability of the society, the foreign investor may pay much attention to the effect of the Deal to the local or national community, such as the employment problems.


  

  - National Technical Safety


  

  The component authority will consider the effect of the Deal on the R&D capability of the key technology in connection to the national security. Technology is the competing edge for each nation state. The nations nowadays have to resort to the ever advanced technology to protect them in the military aspect, compete each other in the economy aspect and guide the development of the society. At this stage, we do not anticipate that China will use this leverage to block any Deal since China is still lack of the R&D ability and remains the World Factory.



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