On 25 August, the Ministry of Commerce (MOFCOM) published the Implementation of a Security Review System for the Merger and Acquisition of Domestic Enterprises by Foreign Investors Provisions (MOFCOM Notice No. 53 of 2011), which took effect on 1 September.
The Provisions elaborate on the requirements of the Establishment of a Security Review System for the Merger and Acquisition of Domestic Enterprises by Foreign Investors Notice (Guo Ban Fa  No. 6), published by the General Office of the State Council on 3 February (see China Business Law Journal volume 2 issue 3, page 5), by clarifying the security screening procedures for M&A deals, the application documents required, and other matters.
According to the Provisions, if any aspect of an M&A deal falls within the scope of an M&A security review but the applicant fails to apply for a review, the local department of commerce should, after accepting the application to proceed with the M&A deal, suspend processing the application and ask the applicant to submit an application to MOFCOM. Before making such an application, the applicant may propose the holding of prior discussions with MOFCOM.
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