China to attract more FDI in the form of M&A

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China's Ministry of Commerce says it plans to attract more foreign investment, in the form of mergers and acquisitions. It comes after the State Council announced it was establishing a review body, to check foreign M&A deals.

The State Council announced a new regulation, under which the National Development and Reform Commission and the Ministry of Commerce will lead a new committee... that will review M&A deals involving foreign firms targeting key companies in the national defense, agricultural, product, energy, resources, transportation, as well as equipment manufacturing and technology industries.

The MOFCOM spokesman says it's a move made to improve China's current M&A growth structures.

Yao Jian, Spokesman of Ministry of Commerce said "In the coming years, the investment through mergers and acquisitions will take up an increasing share of our country's total foreign investment, say about 8 to 10 percent."

Some foreign investors expressed concern about the new rules on vetting foreign acquisition deals. But the spokesman confirmed that the move is aimed at drawing international experience, and won't breach WTO rules.

Yao Jian said "With the share of mergers and acquisitions increasing in investment, it is very necessary for us to learn from the international rules and establish such a security checking system as early as possible."

The NDRC also denied the review procedure would affect the country's openness, or efforts to attract foreign investors.

Editor:Xiong Qu |Source: CNTV.CN


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