China's State Council General Office published the notice on establishing security examination institution of foreign investment merger domestic enterprises. It determines to set up an inter-ministry joint conference system of foreign merger and acquisition domestic enterprises’ security examination and to undertake a merger and acquisition security examination. The notice defines the range, content, working mechanism and procedure of the merger and acquisition security examination.

The institution is carried out in 30 days after issue. Foreign investor merger and acquisition security examination domestic financial agency has other regulations. Investors in HKSAR, MSAR and Taiwan merger and acquisition consult regulations of the notice.

The notice points out the range of the merger and acquisition security examination is foreign investor’s merger and acquisition domestic military and military supporting enterprises, important and sensitive military facility enterprises and other units related to national security. The notice also includes foreign investors merger and acquisition domestic important agricultural products, important energy, resources, important infrastructure, important transportation services, important technology and important equipment manufacture enterprises related to national security as well as real right of control belonging to foreign investors.

The content of the merger and acquisition security examination influences security of national defense, including domestic production capacity for the needs of defense, national service supporting capacity and related equipment and facilities, steady operation of national economy, social basic life order and key technologies R & D capabilities related to national security.