China to conduct targeted national security review of foreign investments: ministry
Published: Jul 15, 2021 06:33 PM
foreign investment

foreign investment

China will screen foreign investments that may compromise the country's national security, the Ministry of Commerce (MOFCOM) said on Thursday.

"It is a common international practice to conduct national security review for foreign investments. The scope and procedures of security review for foreign-related investments have been clearly stipulated in the measures of National Security Review of Foreign Investment, which was issued in December," Gao Feng, spokesperson of MOFCOM, said on Thursday at a weekly press briefing.

China will carry out targeted reviews of foreign investments while avoiding an across-the-board screening, so as to protect the legitimate rights and interests of foreign investors and effectively prevent and defuse national security risks, Gao added.

In terms of attracting foreign investment, the direction of encouraging more foreign companies to come and develop in China will not alter, Gao said. 

From January to June 2021, the actually utilized foreign investment in China reached 607.84 billion yuan ($94.08 billion), up 28.7 percent year-on-year and up 27.1 percent from 2018. Among the investments, high-tech services grew 42.7 percent and high-tech manufacturing grew 29.2 percent on a yearly basis, according to statistics released by the MOFCOM on Wednesday.

China will continue to promote opening up comprehensively. Government departments will work together to fulfill the implementation of the foreign investment law to safeguard fair and free market competition, protect the legitimate rights and interests of foreign investors by fostering a law-based international-class business environment, the spokesperson said.

"We will continue to inspire foreign-funded enterprises to enter, stay and develop their business in China," said Gao.