China – NDRC Foreign Investment Review

China – NDRC Foreign Investment Review

On 19 December 2020, CHI NDRC issued national security measures.

  • NDRC issued national security rules for foreign investment, consisting of 23 articles.


  • Establishes a foreign investment security review agency, led by CHI NDRC and ministry of commerce, to undertake the daily work of foreign investment security review.
  • Will review investment in military industry, supporting areas and other areas related to national defense, as well as investment in military facilities and related areas.
  • As well as investment in important agricultural products, energy and resources, and major equipment manufacturing related to national security, and infrastructure.
  • Important transportation services, cultural products and services, IT and internet products and services, financial services, key technologies and other important fields.
  • If foreign investors do not know whether their investment is within the scope of the security review, they can consult the foreign investment security review agency office.
  • Foreign investors or relevant domestic parties should proactively declare investments that fall within scope of review before they invest; the agency can enforce a deadline.
  • Rules also define the procedure and time limit for foreign investment security review.
  • For non-declaration, fraud, failure to implement additional conditions and other violations, parties may be ordered to dispose of equity or assets within a time limit.
  • In response to reporter questions, NDRC said implementation of foreign investment security review is not protectionism, nor is it a retrogression in opening up.


  • Measures come into force on 18 January 2021.