Foreign investors' domestic acquisition tightened
(Xinhua)
Updated: 2006-08-10 09:50
BEIJING -- China's Ministry of Commerce tightened its supervision over
foreign investors' acquisition of local companies in a modified regulation
issued here Tuesday.
Foreign investors should abide by Chinese laws and policies in their
acquisition of domestic companies, says the regulation.
The regulation, to take effect as of September 8, says that the acquisition
should not affect competition rules of the market or lead to loss of state
assets.
Foreign investors should follow local policies on industrial development,
land and environmental protection, according to the regulation.
For industries not allowed for solely foreign invested operation, foreign
investors can not have full ownership of the company purchased, it says.
Companies required to be dominated by Chinese share holders should remain
controlled by the Chinese side even if they are purchased by foreign investors,
says the regulation.
The regulation also forbids foreign capitals to buy companies in industries
where foreign operation is not allowed, it says.
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