As a developing and resource-scarce country, the Cabinet does not absorb the energy and natural resource into the factors consisting of the national security (but regulated as an industry, see the discussion below). Chinese government may worry that it will cause the tension of foreign investor about the open policy of China. On the other hand, China still needs the input of foreign investors in energy and natural resource industry. For example, China needs the technology in offshore drilling, CBM and shale gas, etc. and the fund for venture exploration in CBM.
Another key component of national security is the environment. As we know, the development of Chinese economy in the past 30 years since its opening door in late 1970s is achieved at the cost of serious and irreparable environment damages. It is almost the consensus that the environmental pollution should be prevented immediately in foreign or domestic investment. However, this consensus has not been incorporated into this Security Review Rule.
The Industries to be Reviewed
The Security Review Rule lists the industries of the target companies that are required going through the national security review:
- Military-related enterprises
These enterprises include the military enterprises and the enterprises providing support to the military enterprises, and the enterprises located around the key and sensible military facilities (the Military Area). It means that if the target company is doing the business which has nothing to do with military, but it is located in the Military Area, the Deal also requires the review.
The other units or organizations that are in connection with the national defense are also categorized as the military-related enterprises.
- The other industries
? Key agriculture products
? Key energy and resource
